Exelon (EXC) Up 2.8% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Exelon (EXC). Shares have added about 2.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Exelon due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Exelon Q4 Earnings and Sales Beat Estimates
Exelon Corporation’s fourth-quarter 2023 earnings of 60 cents per share surpassed the Zacks Consensus Estimate of 58 cents by 3.4%. Earnings increased 39.5% from the year-ago level of 43 cents.
Full-year 2023 adjusted earnings were $2.38 per share, up 4.8% from the previous year’s figure of $2.27.
On a GAAP basis, fourth-quarter earnings were 62 cents per share compared with 43 cents in the year-ago quarter.
Total Revenues
Exelon's fourth-quarter total revenues of $5.4 billion surpassed the Zacks Consensus Estimate of $4.9 billion by 10.2%. The top line was 14.9% higher than the year-ago figure of $4.7 billion.
Total revenues for 2023 were $21.7 billion, up 13.6% from the previous year’s $19.1 billion.
Highlights of the Release
During the quarter, Delmarva Power & Light issued $340 million, $75 million, and $110 million of First Mortgage Bonds, 5.45%, 5.55%, and 5.72% Series, due Nov 8, 2033, November 8, 2038, and November 8, 2053, respectively.
Exelon's fourth-quarter total operating expenses increased 10.3% year over year to $4.3 billion. The increase was due to higher power and fuel prices.
Operating income amounted to $1.1 billion, up 53.8% year over year.
Interest expenses totaled $452 million, up 17.4% from the year-ago quarter’s level.
Financial Highlights
Cash and cash equivalents were $445 million as of Dec 31, 2023, compared with $407 million as of Dec 31, 2022.
Long-term debt was $39.7 billion as of Dec 31, 2023, compared with $35.3 billion as of Dec 31, 2022.
Cash provided by operating activities during 2023 was $4.7 billion compared with $4.9 billion in 2022.
Guidance
Exelon announced its 2024 earnings guidance in the range of $2.40-$2.50 per share. The midpoint of the guided range is $2.45 per share, higher than the bottom-line estimate of $2.40 for the same period.
The company expects to invest $35 billion of capital expenditures over the next four years to meet customer needs, resulting in expected rate base growth of 7.5% and operating EPS compounded annual growth of 5-7% during 2023-2027.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
Currently, Exelon has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Exelon has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Exelon is part of the Zacks Utility - Electric Power industry. Over the past month, DTE Energy (DTE), a stock from the same industry, has gained 2%. The company reported its results for the quarter ended December 2023 more than a month ago.
DTE Energy reported revenues of $3.39 billion in the last reported quarter, representing a year-over-year change of -24.2%. EPS of $1.97 for the same period compares with $1.31 a year ago.
For the current quarter, DTE Energy is expected to post earnings of $1.83 per share, indicating a change of +37.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +2.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for DTE Energy. Also, the stock has a VGM Score of C.
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