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Exelon (EXC) Q3 Earnings: Can the Stock Pull a Surprise?
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Exelon Corporation (EXC - Free Report) is set to release third-quarter 2016 results before the opening bell on Oct 26. Last quarter, this electric and natural gas utility reported a positive earnings surprise of 16.07%. Over the last four quarters, the company has delivered an average positive earnings surprise of 8.36%. Let’s see what is store for this utility this season.
Factors to Consider
Exelon expects third-quarter earnings in the range of 65 to 75 cents per share. Warmer-than-expected temperatures in the quarter might have a positive impact on the company’s earnings.
Exelon is benefiting from the acquisition of Pepco Holdings and the positive regulatory ruling at BGE Electric and Natural Gas Distribution, which will aid additional combined annual revenues of $92 million.
During the quarter, Exelon suffered a defeat in a court case with Internal Revenue Service (IRS). The court ruled against the accounting treatment of profits in relation to the sale of coal plants in 1999. This ruling will potentially impact Exelon, compelling the company to pay $870M in taxes, interest and penalties to the IRS.
Our proven model does not conclusively show that Exelon Corporation is likely to beat the Zacks Consensus Estimate in the third quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: ESP for Exelon is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 74 cents.
Zacks Rank: Exelon currently carries a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult this season.
We caution against stocks with Zacks Ranks #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Exelon may not have the perfect combination for an earnings beat this season, but we have several other utility companies looking up this earnings season.
DTE Energy Company (DTE - Free Report) has an Earnings ESP of +4.64% and a Zacks Rank #2. The company is expected to release third-quarter 2016 results on Oct 26, before the market opens.
WEC Energy Group (WEC - Free Report) has an Earnings ESP of +5.09% and a Zacks Rank #2. The company is expected to release third-quarter 2016 results before the market opens on Oct 26.
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Exelon (EXC) Q3 Earnings: Can the Stock Pull a Surprise?
Exelon Corporation (EXC - Free Report) is set to release third-quarter 2016 results before the opening bell on Oct 26. Last quarter, this electric and natural gas utility reported a positive earnings surprise of 16.07%. Over the last four quarters, the company has delivered an average positive earnings surprise of 8.36%. Let’s see what is store for this utility this season.
Factors to Consider
Exelon expects third-quarter earnings in the range of 65 to 75 cents per share. Warmer-than-expected temperatures in the quarter might have a positive impact on the company’s earnings.
Exelon is benefiting from the acquisition of Pepco Holdings and the positive regulatory ruling at BGE Electric and Natural Gas Distribution, which will aid additional combined annual revenues of $92 million.
During the quarter, Exelon suffered a defeat in a court case with Internal Revenue Service (IRS). The court ruled against the accounting treatment of profits in relation to the sale of coal plants in 1999. This ruling will potentially impact Exelon, compelling the company to pay $870M in taxes, interest and penalties to the IRS.
EXELON CORP Price and EPS Surprise
EXELON CORP Price and EPS Surprise | EXELON CORP Quote
Earnings Whispers
Our proven model does not conclusively show that Exelon Corporation is likely to beat the Zacks Consensus Estimate in the third quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: ESP for Exelon is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 74 cents.
Zacks Rank: Exelon currently carries a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult this season.
We caution against stocks with Zacks Ranks #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Exelon may not have the perfect combination for an earnings beat this season, but we have several other utility companies looking up this earnings season.
CMS Energy (CMS - Free Report) is expected to release third-quarter 2016 results on Oct 27, before the market opens. The company has an Earnings ESP of +5.26% and a Zacks Rank #1.You can see the complete list of today’s Zacks #1 Rank stocks here.
DTE Energy Company (DTE - Free Report) has an Earnings ESP of +4.64% and a Zacks Rank #2. The company is expected to release third-quarter 2016 results on Oct 26, before the market opens.
WEC Energy Group (WEC - Free Report) has an Earnings ESP of +5.09% and a Zacks Rank #2. The company is expected to release third-quarter 2016 results before the market opens on Oct 26.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>