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What's in Store for Exelon Corporation (EXC) in Q2 Earnings?

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Exelon Corporation (EXC - Free Report) is scheduled to report second-quarter 2017 results before the market opens on Aug 2.

Last quarter, the company reported a positive earnings surprise of 6.56%.

Let’s see how things are shaping up for the second quarter.

Factors to Consider

In second-quarter 2017, Exelon expects to generate operating earnings of 45–55 cents per share, which will include the contribution from the FitzPatrick nuclear plants and the plants of the New York ZEC program that started operating from the beginning of the second quarter.

A few of the company’s nuclear plants came back online during the second quarter after planned outages. This will ensure reliable and emission-free power for the customers.

However, lower wholesale power prices are a concern for Exelon, as it has substantial exposure in competitive operations.

Earnings Whispers

Our proven model does not conclusively show that Exelon Corporation is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.

Zacks ESP: Exelon Corporation’s Earnings ESP is -3.70%. This is because the Most Accurate estimate is pegged at 52 cents, lower than the Zacks Consensus Estimate of 54 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

 

Exelon Corporation Price and EPS Surprise

 

Exelon Corporation Price and EPS Surprise | Exelon Corporation Quote

 

Zacks Rank: The company carries a Zacks Rank #3. However, a negative ESP makes a positive earnings surprise unlikely this season.

We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Stocks to Consider

Exelon Corporation does not have the correct mix to come out with an earnings surprise this season. However, the following companies from the Zacks categorized Utility sector have the right combination of elements to post an earnings beat this quarter.

NiSource Inc. (NI - Free Report) has an Earnings ESP of +10.0% and a Zacks Rank #2. It is slated to report second-quarter 2017 earnings on Aug 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

ALLETE Inc. (ALE - Free Report) has an Earnings ESP of +5.36% and a Zacks Rank #3. It is slated to report second-quarter 2017 earnings on Aug 2.

IDAC ORP Inc. (IDA - Free Report) has an Earnings ESP of +2.83% and a Zacks Rank #2. It is slated to report second-quarter 2017 earnings on Aug 3.

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