Back to top

Analyst Blog

Zacks Equity Research

Exelon Stays on Neutral Lane

AEE EXC

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

We reiterate our Neutral recommendation on Exelon Corporation (EXC - Analyst Report) considering the impacts of Hurricane Sandy, commodity price risks, stringent regulations and depressed margins in its Generation business. However, these negatives are expected to be offset by the company’s strong cash and liquidity position, capital realignment strategy and steady focus on expansion of the renewable assets.

As a consequence of the recently occurred Hurricane Sandy, Exelon spent substantial amount to repair its existing facilities and construct new utility delivery systems in Pennsylvania and Maryland. This unexpected expenditure will affect the company’s forthcoming financial performance.

Further, wholesale power prices are determined by supply and demand of utilities, which primarily depends on the fuel prices, particularly coal and natural gas prices. Fluctuations in the wholesale power prices are expected to impact Exelon’s financial performance.

On the flip side, completion of merger with Constellation has benefited Exelon’s results, and we expect the company to realize further synergies moving forward. The company expects to achieve $170 million of merger-related operations and maintenance synergies in 2012, which is expected to reach $550 million by the end of 2013. This merger will boost the company’s position in terms of load and customer base.

Chicago, Illinois-based Exelon Corporation engages in generation, transmission, distribution and sale of electricity to the residential, commercial, industrial and wholesale customers.

In third-quarter 2012, Exelon’s bottom line surpassed the Zacks Consensus Estimate, though the top line missed the same. The Zacks Consensus Estimate for fourth quarter 2012 is currently 66 cents per share, down 20.05% year over year and the Zacks Consensus Estimate for full year is 2.86 per share, down 31.23% year over year.

With a market capitalization of $25.15 billion, the company has 19,267 full time employees. Like its peer Ameren Corporation (AEE - Analyst Report), Exelon Corporation also has a short-term Zacks #3 Rank (Hold rating).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%