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Exelon Corporation’s (EXC - Free Report) third-quarter 2017 operating earnings of 85 cents per share lagged the Zacks Consensus Estimate by a penny. Quarterly earnings were 6.6% lower than the year-ago figure of 91 cents.
The year-over-year decline in earnings was due to the impact of lower load volumes delivered at the Generation segment due to mild weather, lower realized energy prices related to Exelon's ratable hedging strategy and unfavorable weather conditions at the utilities.
On a GAAP basis, quarterly earnings were 85 cents per share compared with 53 cents in the year-ago quarter.
Total Revenues
Exelon's operating revenues of $8,769 million lagged the Zacks Consensus Estimate of $8,974 million by 2.3%.
Quarterly revenues also dropped 2.6% from $9,002 million reported in the year-ago quarter.
Exelon Corporation Price, Consensus and EPS Surprise
Exelon's total operating expenses decreased 5.6% year over year to $7,300 million. The decline was primarily due to lower purchasing power and fuel expenses, and operating and maintenance expenses.
Exelon continues to work on its cost savings initiatives and the benefits of the same were witnessed in the reported quarter as well.
Interest expenses of $386 million were 25.1% lower than the year-ago quarter.
The new electric rates approved by the New Jersey Board of Public Utilities will increase annual revenues by $43 million. The new rates became effective Oct 1, 2017.
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 Sep 30, 2017, was 98-101% for 2017, 79-82% for 2018, and 45-48% for 2019.
Guidance
Exelon revised its 2017 earnings guidance per share to $2.55-$2.75 from the earlier view of $2.50-$2.80. The new guidance takes into account the 9 cent impact from the postponement of the Illinois Zero Emission Credit contract signing from December 2017 to January 2018.
American Electric Power Co., Inc. (AEP - Free Report) reported third-quarter 2017 operating earnings per share of $1.10, missing the Zacks Consensus Estimate of $1.19 by 7.6%.
NextEra Energy, Inc.(NEE - Free Report) reported third-quarter 2017 adjusted earnings of $1.85 per share, beating the Zacks Consensus Estimate of $1.75 by 5.7%.
Dominion Energy Inc.(D - Free Report) reported third-quarter 2017 operating earnings of $1.04 cents per share, beating the Zacks Consensus Estimate by a penny.
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Exelon (EXC) Misses Q3 Earnings Estimates, Revises Guidance
Exelon Corporation’s (EXC - Free Report) third-quarter 2017 operating earnings of 85 cents per share lagged the Zacks Consensus Estimate by a penny. Quarterly earnings were 6.6% lower than the year-ago figure of 91 cents.
The year-over-year decline in earnings was due to the impact of lower load volumes delivered at the Generation segment due to mild weather, lower realized energy prices related to Exelon's ratable hedging strategy and unfavorable weather conditions at the utilities.
On a GAAP basis, quarterly earnings were 85 cents per share compared with 53 cents in the year-ago quarter.
Total Revenues
Exelon's operating revenues of $8,769 million lagged the Zacks Consensus Estimate of $8,974 million by 2.3%.
Quarterly revenues also dropped 2.6% from $9,002 million reported in the year-ago quarter.
Exelon Corporation Price, Consensus and EPS Surprise
Exelon Corporation Price, Consensus and EPS Surprise | Exelon Corporation Quote
Quarterly Highlights
Exelon's total operating expenses decreased 5.6% year over year to $7,300 million. The decline was primarily due to lower purchasing power and fuel expenses, and operating and maintenance expenses.
Exelon continues to work on its cost savings initiatives and the benefits of the same were witnessed in the reported quarter as well.
Interest expenses of $386 million were 25.1% lower than the year-ago quarter.
The new electric rates approved by the New Jersey Board of Public Utilities will increase annual revenues by $43 million. The new rates became effective Oct 1, 2017.
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 Sep 30, 2017, was 98-101% for 2017, 79-82% for 2018, and 45-48% for 2019.
Guidance
Exelon revised its 2017 earnings guidance per share to $2.55-$2.75 from the earlier view of $2.50-$2.80. The new guidance takes into account the 9 cent impact from the postponement of the Illinois Zero Emission Credit contract signing from December 2017 to January 2018.
Zacks Rank
Exelon currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
American Electric Power Co., Inc. (AEP - Free Report) reported third-quarter 2017 operating earnings per share of $1.10, missing the Zacks Consensus Estimate of $1.19 by 7.6%.
NextEra Energy, Inc.(NEE - Free Report) reported third-quarter 2017 adjusted earnings of $1.85 per share, beating the Zacks Consensus Estimate of $1.75 by 5.7%.
Dominion Energy Inc.(D - Free Report) reported third-quarter 2017 operating earnings of $1.04 cents per share, beating the Zacks Consensus Estimate by a penny.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
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