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Exelon (EXC) Posts In-Line Q3 Earnings, Tweaks Guidance

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Exelon Corporation’s (EXC - Free Report) third-quarter 2018 operating earnings of 88 cents per share were on par with the Zacks Consensus Estimate. Quarterly earnings were 3.5% higher than the year-ago figure of 85 cents. The reported earnings were toward the higher end of the guided range of 80-90 cents per share.

The company’s year-over-year improvement in earnings was due to strong contribution from utility and power businesses.

On a GAAP basis, its quarterly earnings were 76 cents per share compared with 85 cents in the year-ago quarter.

Exelon Corporation Price, Consensus and EPS Surprise
 

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

Total Revenues

Exelon's total revenues of $9,403 million surpassed the Zacks Consensus Estimate of $8,420 million by 11.7%.

Quarterly revenues also improved 7.3% from $8,768 million reported in the year-ago quarter.

Quarterly Highlights

Exelon's total operating expenses increased 13.4% year over year to $8,252 million. The increase in expenses was due to higher operating and maintenance expenses, along with purchased power and fuel costs in the reported quarter.

Interest expenses were $393 million, higher than $386 million in the year-ago quarter.

Commonwealth Edison Company (ComEd) completed the installation of smart meters 3 years ahead of original schedule and that too at less than $20 million from the estimated budget. This indicates the capability of the company to efficiently execute plans.

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 Sep 30, 2018 was 98-101% for 2018, 82-85% for 2019 and 48-51% for 2020.

Financial Highlights

Cash and cash equivalents were $1,918 million as of Sep 30, 2018, up 113.6% from Dec 31, 2017 level.
 
Long-term debt was $34,519 million as of Sep 30, 2018, higher than $32,176 million on Dec 31, 2017.

In the first nine months of 2018, the company made capital investments of $5,497 million, down from $5,556 million invested in the year-ago period.

Guidance

Exelon raised the lower end of its 2018 earnings per share guided range to $3.05-$3.20 from $2.90-$3.20 expected earlier.

The company continues to work on its cost-saving initiatives to bring about identified total savings of more than $900 million since 2015.

Zacks Rank

Exelon currently has a Zacks Rank #2 (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 third-quarter 2018 adjusted earnings per share of $1.25, beating the Zacks Consensus Estimate of $1.23 by 1.63%.

NextEra Energy, Inc. (NEE - Free Report) reported third-quarter 2018 adjusted earnings of $2.18 per share, which beat the Zacks Consensus Estimate of $2.17 by 0.46%.

FirstEnergy Corporation (FE - Free Report) reported third-quarter 2018 operating earnings of 80 cents per share, beating the Zacks Consensus Estimate of 73 cents by 9.59%.

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