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.
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.
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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