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Will New Rates Aid Exelon (EXC) to Beat on Earnings in Q1?

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We expect Exelon Corporation (EXC - Free Report) to pull off a positive earnings surprise when it reports first-quarter 2019 results on May 2, before the opening bell. Markedly, the utility recorded in-line earnings in the last reported quarter.

Why a Likely Positive Surprise?

Our proven model shows that Exelon is likely to beat estimates in the to-be-reported quarter because it has the right combination of the following two key ingredients — a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).

Earnings ESP: Exelon has an Earnings ESP of +0.46%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: It currently carries a Zacks Rank #3. Notably, stocks with a solid Zacks Rank and a positive ESP have significantly higher chances of an earnings beat.

Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Exelon Corporation Price and EPS Surprise

Exelon Corporation Price and EPS Surprise | Exelon Corporation Quote

Factors to Consider

Exelon’s first-quarter earnings are expected to improve on the back higher rate base and last year’s completed rate case results. The company is undertaking cost-optimization programs, which in turn will lower operating and maintenance expenses. Its operational efficiency, organic growth and debt reductions are likely to have a positive impact on earnings.

The company expects first-quarter earnings in the range of 80-90 cents per share. The Zacks Consensus Estimate for the same is pegged at 87 cents per share, which is toward the upper end of the guided range.

Upcoming Releases

Here are a few other operators worth considering from the same industry, as these too have the right combination of elements to beat on earnings in the upcoming releases.

Entergy Corporation (ETR - Free Report) is expected to release first-quarter results on May 1. It has an Earnings ESP of +3.99% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Pinnacle West Capital Corporation (PNW - Free Report) is expected to release first-quarter results on May 1. It has an Earnings ESP of +1.41% and a Zacks Rank of 2.

Southern Company (SO - Free Report) is expected to release first-quarter results on May 1. It has an Earnings ESP of +0.10% and a Zacks Rank of 2.

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