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Constellation Energy Corporation (CEG) Up 5.9% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Constellation Energy Corporation (CEG - Free Report) . Shares have added about 5.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Constellation Energy Corporation due for a pullback? 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 catalysts.
Constellation Energy Q3 Earnings and Revenues Surpass Estimates
Constellation Energy Corporation reported third-quarter 2024 earnings of $2.74 per share, which surpassed the Zacks Consensus Estimate of $2.72 by 0.7%. The bottom line also increased 28.6% from the year-ago figure of $2.13.
Total Revenues
Revenues totaled $6.6 billion, which surpassed the Zacks Consensus Estimate of $6.21 billion by 5.5%. The top line increased 7.2% from the year-ago figure of $6.11 billion.
Highlights of the Release
Total operating expenses were $5.09 billion, down 0.8% from $5.13 billion in the year-ago period.
Operating income totaled $1.47 billion compared with the year-ago figure of $0.98 billion.
Net interest expenses increased 79.2% to $147 million from $82 million in the year-ago period.
During the third quarter, CEG executed a 20-year power purchase agreement with Microsoft that will support the restart of Three Mile Island Unit 1, renamed as the Crane Clean Energy Center, retired in 2019 for economic reasons. Under the agreement, Microsoft will purchase the output generated from the renewed plant as part of its goal to help power its data centers in PJM with clean energy.
Financial Position
As of Sept. 30, 2024, Constellation Energy had cash and cash equivalents of $1.79 billion compared with $0.368 billion as of Dec. 31, 2023.
As of Sept. 30, 2024, the company had a long-term debt of $7.4 billion compared with $7.5 billion as of Dec. 31, 2023.
Cash used in operating activities in the first nine months of 2024 amounted to $1.45 billion compared with $2.12 billion in the year-ago period.
Total capital expenditures for the first nine months of 2024 were $1.84 billion compared with $1.74 billion in the year-ago period.
Guidance
Constellation Energy narrowed the full-year 2024 adjusted operating earnings guidance to $8.00-$8.40 per share from the previous projection of $7.60-$8.40 per share. The Zacks Consensus Estimate for the same is pegged at $8.05 per share, which is lower than the midpoint of the new guided range.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted 11.08% due to these changes.
VGM Scores
Currently, Constellation Energy Corporation has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, 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 this revision looks promising. Notably, Constellation Energy Corporation has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Constellation Energy Corporation belongs to the Zacks Alternative Energy - Other industry. Another stock from the same industry, Cheniere Energy Partners, L.P. (CQP - Free Report) , has gained 20.1% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.
Cheniere Energy Partners, L.P. reported revenues of $2.06 billion in the last reported quarter, representing a year-over-year change of -3.4%. EPS of $0.84 for the same period compares with $0.60 a year ago.
For the current quarter, Cheniere Energy Partners, L.P. is expected to post earnings of $1.09 per share, indicating a change of +13.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.8% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Cheniere Energy Partners, L.P. Also, the stock has a VGM Score of C.
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Constellation Energy Corporation (CEG) Up 5.9% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Constellation Energy Corporation (CEG - Free Report) . Shares have added about 5.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Constellation Energy Corporation due for a pullback? 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 catalysts.
Constellation Energy Q3 Earnings and Revenues Surpass Estimates
Constellation Energy Corporation reported third-quarter 2024 earnings of $2.74 per share, which surpassed the Zacks Consensus Estimate of $2.72 by 0.7%. The bottom line also increased 28.6% from the year-ago figure of $2.13.
Total Revenues
Revenues totaled $6.6 billion, which surpassed the Zacks Consensus Estimate of $6.21 billion by 5.5%. The top line increased 7.2% from the year-ago figure of $6.11 billion.
Highlights of the Release
Total operating expenses were $5.09 billion, down 0.8% from $5.13 billion in the year-ago period.
Operating income totaled $1.47 billion compared with the year-ago figure of $0.98 billion.
Net interest expenses increased 79.2% to $147 million from $82 million in the year-ago period.
During the third quarter, CEG executed a 20-year power purchase agreement with Microsoft that will support the restart of Three Mile Island Unit 1, renamed as the Crane Clean Energy Center, retired in 2019 for economic reasons. Under the agreement, Microsoft will purchase the output generated from the renewed plant as part of its goal to help power its data centers in PJM with clean energy.
Financial Position
As of Sept. 30, 2024, Constellation Energy had cash and cash equivalents of $1.79 billion compared with $0.368 billion as of Dec. 31, 2023.
As of Sept. 30, 2024, the company had a long-term debt of $7.4 billion compared with $7.5 billion as of Dec. 31, 2023.
Cash used in operating activities in the first nine months of 2024 amounted to $1.45 billion compared with $2.12 billion in the year-ago period.
Total capital expenditures for the first nine months of 2024 were $1.84 billion compared with $1.74 billion in the year-ago period.
Guidance
Constellation Energy narrowed the full-year 2024 adjusted operating earnings guidance to $8.00-$8.40 per share from the previous projection of $7.60-$8.40 per share. The Zacks Consensus Estimate for the same is pegged at $8.05 per share, which is lower than the midpoint of the new guided range.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted 11.08% due to these changes.
VGM Scores
Currently, Constellation Energy Corporation has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, 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 this revision looks promising. Notably, Constellation Energy Corporation has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Constellation Energy Corporation belongs to the Zacks Alternative Energy - Other industry. Another stock from the same industry, Cheniere Energy Partners, L.P. (CQP - Free Report) , has gained 20.1% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.
Cheniere Energy Partners, L.P. reported revenues of $2.06 billion in the last reported quarter, representing a year-over-year change of -3.4%. EPS of $0.84 for the same period compares with $0.60 a year ago.
For the current quarter, Cheniere Energy Partners, L.P. is expected to post earnings of $1.09 per share, indicating a change of +13.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.8% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Cheniere Energy Partners, L.P. Also, the stock has a VGM Score of C.