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Why Is Exelon (EXC) Down 0.9% Since Last Earnings Report?
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A month has gone by since the last earnings report for Exelon (EXC - Free Report) . Shares have lost about 0.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Exelon due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Exelon Beats Q2 Earnings Estimates, Aims to Invest $31.3B
Exelon Corporation’s second-quarter 2023 earnings of 41 cents per share surpassed the Zacks Consensus Estimate of 40 cents by 2.5%. Earnings of the company declined 6.8% from the year-ago level.
On a GAAP basis, second-quarter earnings were 34 cents per share compared with 47 cents in the year-ago quarter.
Total Revenues
Exelon's second-quarter total revenues of $4,818 million surpassed the Zacks Consensus Estimate of $4,385 million by 9.9%. The top line was 13.6% higher than the year-ago figure of $4,239 million.
Highlights of the Release
Through the first half of 2023, the company has deployed $3.6 billion of investments needed to lead the energy transformation for its customers. Exelon plans to invest $7.2 billion in the second half of 2023 to further strengthen its infrastructure.
Exelon's second-quarter total operating expenses increased 16.1% year over year to $4.11 billion. The increase was due to higher power and fuel prices.
Operating income was $704 million, up 1.4% year over year.
Interest expenses totaled $427 million, up 19.3% from the year-ago quarter.
Financial Highlights
Cash and cash equivalents were $399 million as of Jun 30, 2023 compared with $407 million as of Dec 31, 2022.
Long-term debt was $39,492 million as of Jun 30, 2023 compared with $35,272 million as of Dec 31, 2022.
Cash provided by operating activities during the first six months of 2023 was $1,761 million compared with $3,240 million in the corresponding period of 2022.
Guidance
Exelon reiterated 2023 earnings guidance in the range of $2.30-$2.42 per share. The midpoint of the guided range is $2.36, which is higher than the Zacks Consensus Estimate of $2.35 per share for the same period. The company reaffirmed 6-8% long-term earnings per share growth for the 2022-2026 time period.
EXC expects its capital expenditure for the 2023-2026 time period to be $31.3 billion for meeting customer requirements and further strengthening its transmission and distribution operations, as well as serving its 10 million customers efficiently.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, Exelon has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, Exelon has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Exelon (EXC) Down 0.9% Since Last Earnings Report?
A month has gone by since the last earnings report for Exelon (EXC - Free Report) . Shares have lost about 0.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Exelon due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Exelon Beats Q2 Earnings Estimates, Aims to Invest $31.3B
Exelon Corporation’s second-quarter 2023 earnings of 41 cents per share surpassed the Zacks Consensus Estimate of 40 cents by 2.5%. Earnings of the company declined 6.8% from the year-ago level.
On a GAAP basis, second-quarter earnings were 34 cents per share compared with 47 cents in the year-ago quarter.
Total Revenues
Exelon's second-quarter total revenues of $4,818 million surpassed the Zacks Consensus Estimate of $4,385 million by 9.9%. The top line was 13.6% higher than the year-ago figure of $4,239 million.
Highlights of the Release
Through the first half of 2023, the company has deployed $3.6 billion of investments needed to lead the energy transformation for its customers. Exelon plans to invest $7.2 billion in the second half of 2023 to further strengthen its infrastructure.
Exelon's second-quarter total operating expenses increased 16.1% year over year to $4.11 billion. The increase was due to higher power and fuel prices.
Operating income was $704 million, up 1.4% year over year.
Interest expenses totaled $427 million, up 19.3% from the year-ago quarter.
Financial Highlights
Cash and cash equivalents were $399 million as of Jun 30, 2023 compared with $407 million as of Dec 31, 2022.
Long-term debt was $39,492 million as of Jun 30, 2023 compared with $35,272 million as of Dec 31, 2022.
Cash provided by operating activities during the first six months of 2023 was $1,761 million compared with $3,240 million in the corresponding period of 2022.
Guidance
Exelon reiterated 2023 earnings guidance in the range of $2.30-$2.42 per share. The midpoint of the guided range is $2.36, which is higher than the Zacks Consensus Estimate of $2.35 per share for the same period. The company reaffirmed 6-8% long-term earnings per share growth for the 2022-2026 time period.
EXC expects its capital expenditure for the 2023-2026 time period to be $31.3 billion for meeting customer requirements and further strengthening its transmission and distribution operations, as well as serving its 10 million customers efficiently.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, Exelon has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, Exelon has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.