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Constellation Energy (CEG) Q2 Earnings Lag Estimates, Sales Top

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Constellation Energy Corporation (CEG - Free Report) recorded a second-quarter 2022 operating loss of 34 cents per share against the Zacks Consensus Estimate for earnings of 64 cents. The bottom line decreased by 206.3% from the previous quarter’s 32 cents per share.

Revenues

For the second quarter of 2022, the company’s operating revenues of $5,465 million surpassed the Zacks Consensus Estimate of $2,931 million by 86.5%. However, revenues decreased by 2.3% from the previous quarter’s $5,591 million.

Highlights of the Release

Constellation Energy’s total operating expenses in the second quarter were $5,191 million, up 0.4% from the previous quarter’s $5,172 million, due to an increase in operating and maintenance expenses.

For the second quarter, CEG’s operating income summed at $272 million, down 37.5% from $435 million in the previous quarter.

Net interest expenses were $56 million, on par with the previous quarter.

Constellation Energy announced agreements with the Bank of America and PNC Bank to procure carbon-free energy to reduce the carbon footprint through Constellation’s CORe retail power products. CEG has set a goal to achieve 100% carbon-free power generation by 2040 by leveraging innovative technology and enhancing a diverse mix of hydro, wind and solar resources.

Financial Condition

Constellation Energy had cash and cash equivalents worth $806 million as of Jun 30, 2022 compared with $504 million on Dec 31, 2021.

Long-term debt was $4,507 million as of Jun 30, 2022 compared with $4,575 million on Dec 31, 2021.

Net cash provided by (used in) operating activities in the first six months of 2022 was $1,263 million compared with ($357) million in the year-ago period.

Guidance

Constellation Energy reaffirmed 2022 adjusted EBITDA in the range of $2,350-$2,750 million.

Zacks Rank

Constellation Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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