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Exelon (EXC) to Report Q2 Earnings: What's in the Offing?

Zacks Equity Research

Exelon Corporation EXC is scheduled to report second-quarter 2019 results on Aug 1, before the opening bell. The company recorded break-even earnings in the last reported quarter.

Let’s see how things are shaping up before the next earnings announcement.

Factors to Consider

Exelon’s second-quarter earnings are expected to improve on the back of higher rate base and new rates that have been approved by the regulatory authority. The new rates in Atlantic City Electric’s service territories came into effect from Apr 1, which will likely boost revenues of the company. Operational efficiency, organic growth and debt reductions are likely to have a positive impact on earnings.

The company expects second-quarter earnings in the range of 55-65 cents per share. The Zacks Consensus Estimate for the same is pegged at 63 cents, which is toward the upper end of the guided range.

What Our Quantitative Model Predicts

Our proven model shows that Exelon is unlikely to beat estimates in the to-be-reported quarter. A stock needs to have both a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. That is not the case here as you will see below.

Earnings ESP: The company’s Earnings ESP is +0.27%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Exelon Corporation Price and EPS Surprise

Exelon Corporation Price and EPS Surprise

Exelon Corporation price-eps-surprise | Exelon Corporation Quote

Zacks Rank: Currently, Exelon carries a Zacks Rank #4 (Sell).
 
We caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Investors may consider the following companies from the same industry that have the right combination of elements to beat estimates in the quarter to be reported:

Entergy Corporation ETR is expected to release second-quarter results on Jul 31. It has an Earnings ESP of +1.4% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Southern Company SO is set to release second-quarter results on Jul 31. It has an Earnings ESP of +0.46% and a Zacks Rank of 3.

Black Hills Corporation BKH is scheduled to release second-quarter results on Aug 5. It has an Earnings ESP of +0.75% and a Zacks Rank of 3.

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Entergy Corporation (ETR) : Free Stock Analysis Report
 
Southern Company (The) (SO) : Free Stock Analysis Report
 
Black Hills Corporation (BKH) : Free Stock Analysis Report
 
Exelon Corporation (EXC) : Free Stock Analysis Report
 
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