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Exelon (EXC) Earnings and Revenues Surpass Estimates in Q2

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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.

Exelon Corporation Price, Consensus and EPS Surprise

 

Exelon Corporation Price, Consensus and EPS Surprise | Exelon Corporation Quote

 

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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