We expect Exelon Corporation (EXC - Free Report) to beat expectations when it reports second-quarter 2016 results before the market opens on Aug 9. Last quarter, this diverse utility reported a positive earnings surprise of 3.03%.
Why a Likely Positive Surprise?
Our proven model shows that Exelon is likely to beat estimates because it has the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) to be able to beat estimates, and Exelon has the right mix.
Zacks ESP: The Earnings ESP which represents the difference between the Most Accurate estimate of 57 cents and the Zacks Consensus Estimate of 56 cents is +1.79%. This is a meaningful and leading indicator of a likely positive surprise.
Zacks Rank: Exelon currently carries a Zacks Rank #3. The combination of Exelon’s favorable Zacks Rank and positive ESP makes us reasonably confident of a positive surprise this season.
Conversely, we caution against Sell-rated stocks (#4 or #5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors to Consider
For the second quarter of 2016, Exelon expects earnings per share to be in the range of 50–60 cents compared with 59 cents in the year-ago quarter. We expect this utility to expand its customer base in the to-be-reported quarter.
The company is well poised to benefit from the increase in power prices and warmer-than-normal temperatures during the second quarter.
Other Utility Releases
American Electric Power Co., Inc. (AEP - Free Report) reported second-quarter 2016 operating earnings of 95 cents per share, beating the Zacks Consensus Estimate of 90 cents by 5.6%.
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2016 adjusted earnings of $1.67 per share, outpacing the Zacks Consensus Estimate of $1.58 by 5.7%.
Duke Energy Corp. (DUK - Free Report) reported second-quarter 2016 adjusted earnings of $1.07 per share that came in above the Zacks Consensus Estimate of $1.01 by 5.9%
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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We expect Exelon Corporation (EXC - Free Report) to beat expectations when it reports second-quarter 2016 results before the market opens on Aug 9. Last quarter, this diverse utility reported a positive earnings surprise of 3.03%.
Why a Likely Positive Surprise?
Our proven model shows that Exelon is likely to beat estimates because it has the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) to be able to beat estimates, and Exelon has the right mix.
Zacks ESP: The Earnings ESP which represents the difference between the Most Accurate estimate of 57 cents and the Zacks Consensus Estimate of 56 cents is +1.79%. This is a meaningful and leading indicator of a likely positive surprise.
Zacks Rank: Exelon currently carries a Zacks Rank #3. The combination of Exelon’s favorable Zacks Rank and positive ESP makes us reasonably confident of a positive surprise this season.
Conversely, we caution against Sell-rated stocks (#4 or #5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors to Consider
For the second quarter of 2016, Exelon expects earnings per share to be in the range of 50–60 cents compared with 59 cents in the year-ago quarter. We expect this utility to expand its customer base in the to-be-reported quarter.
The company is well poised to benefit from the increase in power prices and warmer-than-normal temperatures during the second quarter.
Other Utility Releases
American Electric Power Co., Inc. (AEP - Free Report) reported second-quarter 2016 operating earnings of 95 cents per share, beating the Zacks Consensus Estimate of 90 cents by 5.6%.
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2016 adjusted earnings of $1.67 per share, outpacing the Zacks Consensus Estimate of $1.58 by 5.7%.
Duke Energy Corp. (DUK - Free Report) reported second-quarter 2016 adjusted earnings of $1.07 per share that came in above the Zacks Consensus Estimate of $1.01 by 5.9%
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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