Exelon Corporation’s (EXC - Free Report) fourth-quarter 2019 operating earnings of 83 cents per share surpassed the Zacks Consensus Estimate of 73 cents by 13.6%. Also, the reported earnings were 43.1% higher than the year-ago figure of 58 cents.
The year-over-year increase in earnings was due to rate increases at PECO, BGE and PHI, lower operating expenses, higher realized energy prices and decrease in nuclear outage days.
On a GAAP basis, its quarterly earnings were 79 cents per share compared with 16 cents in the year-ago quarter.
Total Revenues
Exelon's total revenues of $8,343 million lagged the Zacks Consensus Estimate of $9,231 million by 9.6%. The top line also declined 5.3% from the year-ago figure of $8,812 million. The year-over-year decline in revenues was due to lower contribution from Generation, BGE and ComEd businesses.
Highlights of the Release
Exelon's total operating expenses decreased 8.8% year over year to $7,394 million. The decline in total expenses was due to lower power and fuel costs, as well as operating and maintenance expenses.
Interest expenses were $395 million, down 5.1% from $416 million in the year-ago quarter.
The company efficiently served 0.9% and 1% more electric and natural gas customers, respectively, than 2018 levels.
Hedges
Exelon's hedging program involves safeguarding 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, 2019 was 91-94% for 2020 and 61-64% for 2021.
Financial Highlights
Cash and cash equivalents were $587 million as of Dec 31, 2019 compared with $1,349 million in the corresponding period of 2018.
Long-term debt was $31,329 million as of Dec 31, 2019 compared with $34,075 million in the comparable period of 2018.
Cash from operating activities in 2019 was $6,659 million compared with $8,644 million in 2018.
Guidance
Exelon’s guidance for 2020 earnings is projected in the range of $3.00-$3.30 per share. The company recorded earnings of $3.22 per share in 2019. The midpoint of the above guided range is $3.15, higher than the current Zacks Consensus Estimate for the period of $3.02. Exelon plans to invest $26 billion in the 2020-2023 time period to strengthen existing operations.
Zacks Rank
Exelon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2019 adjusted earnings of $1.44 per share, lagging the Zacks Consensus Estimate of $1.54 by 6.5%.
FirstEnergy Corporation (FE - Free Report) reported fourth-quarter 2019 operating earnings of 55 cents per share, which beat the Zacks Consensus Estimate of 48 cents by 14.6%.
WEC Energy Group (WEC - Free Report) came up with fourth-quarter 2019 adjusted earnings per share of 77 cents, which beat the Zacks Consensus Estimate of 72 cents by 6.9%.
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Exelon Corporation’s (EXC - Free Report) fourth-quarter 2019 operating earnings of 83 cents per share surpassed the Zacks Consensus Estimate of 73 cents by 13.6%. Also, the reported earnings were 43.1% higher than the year-ago figure of 58 cents.
The year-over-year increase in earnings was due to rate increases at PECO, BGE and PHI, lower operating expenses, higher realized energy prices and decrease in nuclear outage days.
On a GAAP basis, its quarterly earnings were 79 cents per share compared with 16 cents in the year-ago quarter.
Total Revenues
Exelon's total revenues of $8,343 million lagged the Zacks Consensus Estimate of $9,231 million by 9.6%. The top line also declined 5.3% from the year-ago figure of $8,812 million. The year-over-year decline in revenues was due to lower contribution from Generation, BGE and ComEd businesses.
Highlights of the Release
Exelon's total operating expenses decreased 8.8% year over year to $7,394 million. The decline in total expenses was due to lower power and fuel costs, as well as operating and maintenance expenses.
Interest expenses were $395 million, down 5.1% from $416 million in the year-ago quarter.
The company efficiently served 0.9% and 1% more electric and natural gas customers, respectively, than 2018 levels.
Hedges
Exelon's hedging program involves safeguarding 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, 2019 was 91-94% for 2020 and 61-64% for 2021.
Financial Highlights
Cash and cash equivalents were $587 million as of Dec 31, 2019 compared with $1,349 million in the corresponding period of 2018.
Long-term debt was $31,329 million as of Dec 31, 2019 compared with $34,075 million in the comparable period of 2018.
Cash from operating activities in 2019 was $6,659 million compared with $8,644 million in 2018.
Guidance
Exelon’s guidance for 2020 earnings is projected in the range of $3.00-$3.30 per share. The company recorded earnings of $3.22 per share in 2019. The midpoint of the above guided range is $3.15, higher than the current Zacks Consensus Estimate for the period of $3.02. Exelon plans to invest $26 billion in the 2020-2023 time period to strengthen existing operations.
Zacks Rank
Exelon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2019 adjusted earnings of $1.44 per share, lagging the Zacks Consensus Estimate of $1.54 by 6.5%.
FirstEnergy Corporation (FE - Free Report) reported fourth-quarter 2019 operating earnings of 55 cents per share, which beat the Zacks Consensus Estimate of 48 cents by 14.6%.
WEC Energy Group (WEC - Free Report) came up with fourth-quarter 2019 adjusted earnings per share of 77 cents, which beat the Zacks Consensus Estimate of 72 cents by 6.9%.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>
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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