Exelon Corporation’s (EXC - Free Report) second-quarter 2017 adjusted operating earnings of 54 cents per share beat the Zacks Consensus Estimate of 52 cents by 3.8%. However, the quarterly earnings were 16.9% lower than the year-ago figure of 65 cents.
The year-over-year decline in earnings was due to increased nuclear outage days and lower realized energy prices.
On a GAAP basis, quarterly earnings were 9 cents per share, compared with 29 cents in the year-ago quarter.
The difference between GAAP and adjusted operating earnings was due to the combined impact of plant divestment, hedging activities, assets impairments and a few one-time items, resulting in a net loss of 45 cents.
Total Revenue
Exelon's operating revenues of $7,623 million surpassed the Zacks Consensus Estimate of $7,514 million by 1.4%.
Quarterly revenues also increased 10.3% year over year from $6,910 million reported in the year-ago quarter.
Quarterly Highlights
Exelon’s two new combined-cycle gas turbines totaling nearly 2,200 MWs in Texas went into service on time and on budget during the second quarter.
Exelon's total operating expenses increased 17.5% year over year to $7,392 million. The increase was primarily due to higher purchasing power and fuel expenses, and operating and maintenance expenses.
Interest expenses of $436 million were 15.9% higher than the year-ago quarter.
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 Jun 30, 2017, was 96–99% for 2017, 71–74% for 2018, and 39–42% for 2019.
Guidance
Exelon reiterated its 2017 earnings guidance per share of $2.50-$2.80.
Zacks Rank
Exelon Corporation 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 second-quarter 2017 operating earnings of 75 cents per share, lagging the Zacks Consensus Estimate of 82 cents by 8.5%.
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2017 adjusted earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.76 by 5.7%. Reported earnings were also up 11.4% year over year.
Dominion Energy Inc. (D - Free Report) reported second-quarter 2017 operating earnings of 67 per share, beating the Zacks Consensus Estimate of 66 by a penny.
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Exelon Corporation’s (EXC - Free Report) second-quarter 2017 adjusted operating earnings of 54 cents per share beat the Zacks Consensus Estimate of 52 cents by 3.8%. However, the quarterly earnings were 16.9% lower than the year-ago figure of 65 cents.
The year-over-year decline in earnings was due to increased nuclear outage days and lower realized energy prices.
On a GAAP basis, quarterly earnings were 9 cents per share, compared with 29 cents in the year-ago quarter.
The difference between GAAP and adjusted operating earnings was due to the combined impact of plant divestment, hedging activities, assets impairments and a few one-time items, resulting in a net loss of 45 cents.
Total Revenue
Exelon's operating revenues of $7,623 million surpassed the Zacks Consensus Estimate of $7,514 million by 1.4%.
Quarterly revenues also increased 10.3% year over year from $6,910 million reported in the year-ago quarter.
Quarterly Highlights
Exelon’s two new combined-cycle gas turbines totaling nearly 2,200 MWs in Texas went into service on time and on budget during the second quarter.
Exelon's total operating expenses increased 17.5% year over year to $7,392 million. The increase was primarily due to higher purchasing power and fuel expenses, and operating and maintenance expenses.
Interest expenses of $436 million were 15.9% higher than the year-ago quarter.
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 Jun 30, 2017, was 96–99% for 2017, 71–74% for 2018, and 39–42% for 2019.
Guidance
Exelon reiterated its 2017 earnings guidance per share of $2.50-$2.80.
Zacks Rank
Exelon Corporation 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 second-quarter 2017 operating earnings of 75 cents per share, lagging the Zacks Consensus Estimate of 82 cents by 8.5%.
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2017 adjusted earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.76 by 5.7%. Reported earnings were also up 11.4% year over year.
Dominion Energy Inc. (D - Free Report) reported second-quarter 2017 operating earnings of 67 per share, beating the Zacks Consensus Estimate of 66 by a penny.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential.
See these stocks now>>
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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