We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Exelon (EXC) Up 2.1% Since Earnings Report: Can It Continue?
Read MoreHide Full Article
It has been about a month since the last earnings report for Exelon Corporation (EXC - Free Report) . Shareshave added about 2.1% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is EXC 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 drivers.
Exelon Q1 Earnings and Revenues Beat on New Rates
Exelon Corporation’s first-quarter 2018 operating earnings of 96 cents per share beat the Zacks Consensus Estimate of 93 cents by 3.2%. Quarterly earnings were 50% higher than the year-ago figure of 44 cents.
The year-over-year improvement in earnings was due to favorable weather, rate increases at BGE and PHI, and higher electric distribution and transmission earnings at ComEd.
On a GAAP basis, quarterly earnings were 60 cents per share compared with $1.06 in the year-ago quarter. The difference between GAAP and operating earnings in the reported quarter was due to a few one-time gains and losses, resulting in a one-time impact of 36 cents per share.
Total Revenues
Exelon's total revenues of $9,693 million surpassed the Zacks Consensus Estimate of $9,015 million.
Quarterly revenues also improved 10.8% from $8,747 million reported in the year-ago quarter.
Quarterly Highlights
Exelon's total operating expenses increased 12.8% year over year to $8,648 million. The rise was primarily due to higher purchasing power and fuel expenses.
Interest expenses were $371 million, a tad lower than $373 million in the year-ago quarter.
Hedges
Exelon's hedging program involves safeguarding of commodity risks for expected generation, typically on a ratable basis, over a three-year period. The proportion of expected generation hedged as of Mar 31, 2018 was 91-94% for 2018, 63-66% for 2019, and 33-36% for 2020.
Guidance
Exelon reiterated its 2018 earnings guidance per share in the range of $2.90-$3.20 and provided second-quarter guidance within 55-65 cents per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been three revisions higher for the current quarter. Last month, the consensus estimate has shifted by 7% due to these changes.
At this time, EXC has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was also allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is equally suitable for value, growth, and momentum investors.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. Interestingly, EXC has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Exelon (EXC) Up 2.1% Since Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Exelon Corporation (EXC - Free Report) . Shareshave added about 2.1% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is EXC 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 drivers.
Exelon Q1 Earnings and Revenues Beat on New Rates
Exelon Corporation’s first-quarter 2018 operating earnings of 96 cents per share beat the Zacks Consensus Estimate of 93 cents by 3.2%. Quarterly earnings were 50% higher than the year-ago figure of 44 cents.
The year-over-year improvement in earnings was due to favorable weather, rate increases at BGE and PHI, and higher electric distribution and transmission earnings at ComEd.
On a GAAP basis, quarterly earnings were 60 cents per share compared with $1.06 in the year-ago quarter. The difference between GAAP and operating earnings in the reported quarter was due to a few one-time gains and losses, resulting in a one-time impact of 36 cents per share.
Total Revenues
Exelon's total revenues of $9,693 million surpassed the Zacks Consensus Estimate of $9,015 million.
Quarterly revenues also improved 10.8% from $8,747 million reported in the year-ago quarter.
Quarterly Highlights
Exelon's total operating expenses increased 12.8% year over year to $8,648 million. The rise was primarily due to higher purchasing power and fuel expenses.
Interest expenses were $371 million, a tad lower than $373 million in the year-ago quarter.
Hedges
Exelon's hedging program involves safeguarding of commodity risks for expected generation, typically on a ratable basis, over a three-year period. The proportion of expected generation hedged as of Mar 31, 2018 was 91-94% for 2018, 63-66% for 2019, and 33-36% for 2020.
Guidance
Exelon reiterated its 2018 earnings guidance per share in the range of $2.90-$3.20 and provided second-quarter guidance within 55-65 cents per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been three revisions higher for the current quarter. Last month, the consensus estimate has shifted by 7% due to these changes.
Exelon Corporation Price and Consensus
Exelon Corporation Price and Consensus | Exelon Corporation Quote
VGM Scores
At this time, EXC has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was also allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is equally suitable for value, growth, and momentum investors.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. Interestingly, EXC has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.