Exelon (EXC) Q3 Earnings Lags Estimates, 2023 View Narrowed
Exelon Corporation’s EXC third-quarter 2023 earnings of 67 cents per share missed the Zacks Consensus Estimate of 68 cents by a penny. Earnings declined 10.7% from the year-ago level of 75 cents.
On a GAAP basis, second-quarter earnings were 70 cents per share compared with 68 cents in the year-ago quarter.
Total Revenues
Exelon's third-quarter total revenues of $5,980 million surpassed the Zacks Consensus Estimate of $4,962 million by 20.5%. The top line was 23.4% higher than the year-ago figure of $4,845 million.
Exelon Corporation Price, Consensus and EPS Surprise
Exelon Corporation price-consensus-eps-surprise-chart | Exelon Corporation Quote
Highlights of the Release
During the quarter, Exelon’s unit Pepco issued $100 million of First Mortgage Bonds, 5.35% Series, due Sep 13, 2033. Pepco used the proceeds to repay existing indebtedness and for general corporate purposes.
Exelon continues to execute its capital expenditure plan and is on course to spend $7.2 billion in capital investment in 2023 to further strengthen its infrastructure. The company is planning to expand its interstate transmission projects to cater to rising demand from data center hubs.
Exelon's third-quarter total operating expenses increased 90.4% year over year to $1.74 billion. The increase was due to higher power and fuel prices.
Operating income was $530 million, up 14% year over year.
Interest expenses totaled $119 million, up 14.4% from the year-ago quarter.
Financial Highlights
Cash and cash equivalents were $300 million as of Sep 30, 2023 compared with $407 million as of Dec 31, 2022.
Long-term debt was $39,431 million as of Sep 30, 2023 compared with $35,272 million as of Dec 31, 2022.
Cash provided by operating activities during the first nine months of 2023 was $3,292 million compared with $4,141 million in the corresponding period of 2022.
Guidance
Exelon narrowed its 2023 earnings guidance in the range of $2.32-$2.40 from the prior range of $2.30-$2.42 per share. The midpoint of the guided range is $2.36, which is higher than the Zacks Consensus Estimate of $2.35 per share for the same period. The company reaffirmed 6-8% long-term earnings per share growth for the 2022-2026 time period.
EXC expects its capital expenditure for the 2023-2026 time period to be $31.3 billion for meeting customer requirements and further strengthening its transmission and distribution operations, as well as serving its 10 million customers efficiently.
Zacks Rank
Exelon has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
NextEra Energy, Inc. NEE released third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%.
The Zacks Consensus Estimate for NEE’s 2023 earnings is pinned at $3.12 per share, implying a year-over-year improvement of 7.6%. Long-term (three- to five-year) earnings growth of NEE is pegged at 8.18%.
CMS Energy Corp. CMS reported third-quarter 2023 adjusted earnings of 61 cents per share, which missed the Zacks Consensus Estimate of 63 cents by 3.2%.
The Zacks Consensus Estimate for CMS’ 2023 earnings is pinned at $3.10 per share, implying a year-over-year improvement of 7.3%. The long-term earnings growth of CMS is pegged at 7.5%.
FirstEnergy Corporation FE reported third-quarter 2023 operating earnings per share of 88 cents, which surpassed the Zacks Consensus Estimate of 85 cents by 3.5%.
The Zacks Consensus Estimate for FE’s 2023 earnings is pinned at $2.54 per share, implying a year-over-year improvement of 5.4%.
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