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Exelon (EXC) Misses Q3 Earnings Estimates, Revises Guidance

Exelon Corporation’s EXC third-quarter 2017 operating earnings of 85 cents per share lagged the Zacks Consensus Estimate by a penny. Quarterly earnings were 6.6% lower than the year-ago figure of 91 cents.

The year-over-year decline in earnings was due to the impact of lower load volumes delivered at the Generation segment due to mild weather, lower realized energy prices related to Exelon's ratable hedging strategy and unfavorable weather conditions at the utilities.

On a GAAP basis, quarterly earnings were 85 cents per share compared with 53 cents in the year-ago quarter.

Total Revenues

Exelon's operating revenues of $8,769 million lagged the Zacks Consensus Estimate of $8,974 million by 2.3%.

Quarterly revenues also dropped 2.6% from $9,002 million reported in the year-ago quarter.

Exelon Corporation Price, Consensus and EPS Surprise
 

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

Quarterly Highlights

Exelon's total operating expenses decreased 5.6% year over year to $7,300 million. The decline was primarily due to lower purchasing power and fuel expenses, and operating and maintenance expenses.

Exelon continues to work on its cost savings initiatives and the benefits of the same were witnessed in the reported quarter as well.

Interest expenses of $386 million were 25.1% lower than the year-ago quarter.

The new electric rates approved by the New Jersey Board of Public Utilities will increase annual revenues by $43 million. The new rates became effective Oct 1, 2017.

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 Sep 30, 2017, was 98-101% for 2017, 79-82% for 2018, and 45-48% for 2019.

Guidance

Exelon revised its 2017 earnings guidance per share to $2.55-$2.75 from the earlier view of $2.50-$2.80. The new guidance takes into account the 9 cent impact from the postponement of the Illinois Zero Emission Credit contract signing from December 2017 to January 2018.

Zacks Rank

Exelon 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 reported third-quarter 2017 operating earnings per share of $1.10, missing the Zacks Consensus Estimate of $1.19 by 7.6%.

NextEra Energy, Inc.NEE reported third-quarter 2017 adjusted earnings of $1.85 per share, beating the Zacks Consensus Estimate of $1.75 by 5.7%.

Dominion Energy Inc.D reported third-quarter 2017 operating earnings of $1.04 cents per share, beating the Zacks Consensus Estimate by a penny.

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American Electric Power Company, Inc. (AEP): Free Stock Analysis Report
 
Exelon Corporation (EXC): Free Stock Analysis Report
 
NextEra Energy, Inc. (NEE): Free Stock Analysis Report
 
Dominion Energy Inc. (D): Free Stock Analysis Report
 
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