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Exelon's (EXC) Q2 Earnings and Revenues Miss Estimates

Zacks Equity Research

Exelon Corporation’s EXC second-quarter 2019 operating earnings of 60 cents per share lagged the Zacks Consensus Estimate of 63 cents by 4.8%. Also, the reported earnings were 15.5% lower than the year-ago figure of 71 cents.
 
The year-over-year decline in earnings was primarily due to lower realized energy prices.

On a GAAP basis, its quarterly earnings were 50 cents per share compared with 56 cents in the year-ago quarter.

Total Revenues

Exelon's total revenues of $7,689 million lagged the Zacks Consensus Estimate of $7,894 million by 2.6%. The top line also declined 2.3% from the year-ago figure of $8,076 million. The year-over-year decline in revenues was due lower contribution from Generation, BGE and ComEd businesses.

 

Exelon Corporation Price, Consensus and EPS Surprise

 

Exelon Corporation Price, Consensus and EPS Surprise

Exelon Corporation price-consensus-eps-surprise-chart | Exelon Corporation Quote

Highlights of the Release

Exelon's total operating expenses decreased 3.6% year over year to $6,881 million. The decline in total expenses was due to lower power and fuel costs, as well as operating and maintenance expenses.

Interest expenses were $409 million, up 9.6% from $373 million in the year-ago quarter.

In the reported quarter, the company efficiently serviced more electric and natural gas customers than the year-ago period.

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 Jun 30 was 92-95% for 2019, 70-73% for 2020 and 40-43% for 2021.

Financial Highlights

Cash and cash equivalents were $735 million as of Jun 30, 2019 compared with $1,349 million on Dec 31, 2018.

Long-term debt was $31,909 million as of Jun 30, 2019 compared with $34,075 million on Dec 31, 2018.

Cash from operating activities in the first half of 2019 was $2,898 million compared with $3,869 million in the comparable year-ago period.

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

NextEra Energy, Inc. NEE reported second-quarter 2019 adjusted earnings of $2.35 per share, beating the Zacks Consensus Estimate of $2.28 by 3.1%.

Dominion Energy Inc. D reported second-quarter 2019 operating earnings of 77 cents per share, beating the Zacks Consensus Estimate of 75 cents by 2.6%.

Eversource Energy ES reported second-quarter 2019 operating earnings of 74 cents per share, beating the Zacks Consensus Estimate by a penny.
 
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