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Exelon (EXC) Up 2.7% Since Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Exelon Corporation (EXC - Free Report) . Shares have added about 2.7% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it 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 Q4 Earnings Lag Estimates, Issues '17 Outlook
Exelon Corporation reported fourth-quarter 2016 adjusted operating earnings of $0.44 per share, lagging the Zacks Consensus Estimate of $0.45 by $0.01. Quarterly earnings were 15.8% higher than year-ago tally of $0. 38.
The bottom-line improvement was driven by regulatory rate hikes, favorable weather and the positive impact of lower nuclear outage days at the Generation segment.
On a GAAP basis, quarterly earnings were $0.22 per share, compared with $0.33 a year ago. The difference between GAAP and adjusted operating earnings was due to the combined impact of hedging activities, impairment of assets, asset retirement obligation, other one-time charges resulting in a net charge of $0.22.
Full-year adjusted earnings came in at $2.68 per share, up 7.6% from $2.49 in 2015 and in line with the Zacks Consensus Estimate of $2.68. Exelon’s earnings were with management’s guidance range of $2.55 to $2.75 per share.
Total Revenue
Exelon's total operating revenue of $8,052 million missed the Zacks Consensus Estimate of $8,062 million by 0.1%. However, quarterly revenues increased 20.5% year over year.
Full-year revenues amounted to $31,905 million, up 9.1% from $29,237 million in 2015. The Zacks Consensus Estimate was $30,000 million.
Quarterly Highlights
Exelon's total operating expenses increased 19.6% year over year to $7,112 million. The increase in operating expenses was primarily due to higher purchased power and fuel expenses, and operating and maintenance expenses.
The company reported operating income of $940 million in the quarter, up 26.3% from $744 million a year ago.
Interest expenses of $356 million were 28.1% higher than the year-ago quarter.
Exelon’s Commonwealth Edison Company (ComEd) was serving nearly 3.97 million electric customers in the fourth quarter, up 1.3% year over year.
Financial Position
As of Dec 31, 2016, Exelon's cash and cash equivalents were $635 million, compared with $6,502 million at the end of 2015.
Long-term debt as of Dec 31, 2016 was $31,575 million, up from $23,645 million as of Dec 31, 2015.
In 2016, net cash flow from operating activities was $8,434 million, compared with $7,616 million in the year-ago period. During the same period, Exelon's capital expenditure was $8,565 million, compared with $7,624 million in 2015.
Hedges
Exelon's hedging program involves hedging of commodity risks for expected generation, typically on a ratable basis, over a three-year period. The proportion of expected generation hedged as of Dec 31, 2016, was 91–94% for 2017, 56–59% for 2018, and 28–31% for 2019.
Looking Ahead
Exelon expects its 2017 earnings in the range to $2.50 to $2.80 per share.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There has been one upward revision for the current quarter.
Currently, Exelon's stock has an average Growth Score of 'C', however its Momentum is doing a lot better with an 'A'. Following the exact same course, the stock was allocated a grade of 'A' on the value side, putting it in the top 20% 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 more suitable for value and momentum investors than growth investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Exelon (EXC) Up 2.7% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Exelon Corporation (EXC - Free Report) . Shares have added about 2.7% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it 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 Q4 Earnings Lag Estimates, Issues '17 Outlook
Exelon Corporation reported fourth-quarter 2016 adjusted operating earnings of $0.44 per share, lagging the Zacks Consensus Estimate of $0.45 by $0.01. Quarterly earnings were 15.8% higher than year-ago tally of $0. 38.
The bottom-line improvement was driven by regulatory rate hikes, favorable weather and the positive impact of lower nuclear outage days at the Generation segment.
On a GAAP basis, quarterly earnings were $0.22 per share, compared with $0.33 a year ago. The difference between GAAP and adjusted operating earnings was due to the combined impact of hedging activities, impairment of assets, asset retirement obligation, other one-time charges resulting in a net charge of $0.22.
Full-year adjusted earnings came in at $2.68 per share, up 7.6% from $2.49 in 2015 and in line with the Zacks Consensus Estimate of $2.68. Exelon’s earnings were with management’s guidance range of $2.55 to $2.75 per share.
Total Revenue
Exelon's total operating revenue of $8,052 million missed the Zacks Consensus Estimate of $8,062 million by 0.1%. However, quarterly revenues increased 20.5% year over year.
Full-year revenues amounted to $31,905 million, up 9.1% from $29,237 million in 2015. The Zacks Consensus Estimate was $30,000 million.
Quarterly Highlights
Exelon's total operating expenses increased 19.6% year over year to $7,112 million. The increase in operating expenses was primarily due to higher purchased power and fuel expenses, and operating and maintenance expenses.
The company reported operating income of $940 million in the quarter, up 26.3% from $744 million a year ago.
Interest expenses of $356 million were 28.1% higher than the year-ago quarter.
Exelon’s Commonwealth Edison Company (ComEd) was serving nearly 3.97 million electric customers in the fourth quarter, up 1.3% year over year.
Financial Position
As of Dec 31, 2016, Exelon's cash and cash equivalents were $635 million, compared with $6,502 million at the end of 2015.
Long-term debt as of Dec 31, 2016 was $31,575 million, up from $23,645 million as of Dec 31, 2015.
In 2016, net cash flow from operating activities was $8,434 million, compared with $7,616 million in the year-ago period. During the same period, Exelon's capital expenditure was $8,565 million, compared with $7,624 million in 2015.
Hedges
Exelon's hedging program involves hedging of commodity risks for expected generation, typically on a ratable basis, over a three-year period. The proportion of expected generation hedged as of Dec 31, 2016, was 91–94% for 2017, 56–59% for 2018, and 28–31% for 2019.
Looking Ahead
Exelon expects its 2017 earnings in the range to $2.50 to $2.80 per share.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There has been one upward revision for the current quarter.
Exelon Corporation Price and Consensus
Exelon Corporation Price and Consensus | Exelon Corporation Quote
VGM Scores
Currently, Exelon's stock has an average Growth Score of 'C', however its Momentum is doing a lot better with an 'A'. Following the exact same course, the stock was allocated a grade of 'A' on the value side, putting it in the top 20% 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 more suitable for value and momentum investors than growth investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.