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Exelon (EXC) Posts In-Line Q4 Earnings, Beats on Revenues

Zacks Equity Research

Exelon Corporation’s EXC fourth-quarter 2018 operating earnings of 58 cents per share were on par with the Zacks Consensus Estimate. The reported earnings were 3.6% higher than the year-ago figure of 56 cents.
 
The company’s year-over-year improvement in the bottom line was due higher utility earnings from ComEd and regulatory rate increases at PHI.

On a GAAP basis, its quarterly earnings were 16 cents per share compared with $1.94 in the year-ago quarter.

Total Revenues

Exelon's total revenues of $8,814 million surpassed the Zacks Consensus Estimate of $7,222 million by 22.1%. Revenues also improved 5.4% from year-ago quarter. The improvement in revenues was due strong performance from Utility and Generation businesses.

Exelon Corporation Price, Consensus and EPS Surprise

 

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

Highlights of the Release

Exelon's total operating expenses increased 10.9% year over year to $8,107 million. The increase in expenses was due to higher power and fuel costs in the reported quarter.

Interest expenses were $416 million, up 13.9% from $365 million in the year-ago quarter.

Total electric customers served by the company at the end of 2018 increased 0.93% from the corresponding period of 2017. Exelon Utilities have a planned capital expenditure of $23 billion over the next four years, which will help it to strengthen its infrastructure and serve the expanding customer base more efficiently.

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 Dec 31, 2018 was 89-92% for 2019 and 56-59% for 2020.

Financial Highlights

Cash and cash equivalents were $1,349 million as of Dec 31, 2018, up 50.2% from the Dec 31, 2017 level.
 
Long-term debt was $34,075 million as of Dec 31, 2018, higher than $32,176 million in the corresponding period of 2017.

In 2018, the company made capital investments of $7,594 million, marginally up from $7,584 million invested in the year-ago period.

Guidance

Exelon initiated its 2019 earnings per share guidance. Earnings are expected in the range of $3-$3.30 per share, whose mid-point of $3.15 is in line with the current Zacks Consensus Estimate for 2019 of $3.15.

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.

Other Releases

American Electric Power Co. AEP reported fourth-quarter 2018 operating earnings per share of 72 cents, in line with the Zacks Consensus Estimate.

NextEra Energy, Inc. NEE reported fourth-quarter 2018 adjusted earnings of $1.49 per share, lagging the Zacks Consensus Estimate of $1.51 by 1.3%.

Dominion Energy Inc. D reported fourth-quarter 2018 operating earnings of 89 cents per share, lagging the Zacks Consensus Estimate of 91 cents by 2.2%.

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