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Exelon (EXC) Q1 Earnings Surpass Estimates, Revenues Miss

Zacks Equity Research
·4 min read

Exelon Corporation’s EXC first-quarter 2020 operating earnings of 87 cents per share surpassed the Zacks Consensus Estimate of 85 cents by 2.4%. The reported earnings were on par with the year-ago figure. In the reported quarter, the impact of unfavorable weather was offset by rate increases in some of its service areas.

On a GAAP basis, quarterly earnings were 60 cents per share compared with 93 cents in the year-ago quarter.

Total Revenues

Exelon's total revenues of $8,747 million lagged the Zacks Consensus Estimate of $9,318 million by 6.1%. The top line also declined 7.7% from the year-ago figure of $9,477 million.

Exelon Corporation Price, Consensus and EPS Surprise

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

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

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Highlights of the Release

Exelon's total operating expenses decreased 8.8% year over year to $7,529 million. The decline in total expenses was due to lower purchased power and fuel costs.

Interest expenses were $410 million, up 1.7% from $403 million in the year-ago quarter.

The company efficiently served 0.8% and 1% more electric and natural gas customers, respectively, than first-quarter 2019 levels. Exelon Generations’ nuclear fleet capacity factor was 93.9% in the quarter compared with 97.1% in the year-ago period. The decline was due to planned refueling outages in first-quarter 2020.

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 Mar 31, 2020 was 89-92% for 2020 and 70-73% for 2021.

Financial Highlights

Cash and cash equivalents were $1,457 million as of Mar 31, 2020 compared with $587 million on Dec 31, 2019.

Long-term debt was $34,808 million as of Mar 31, 2020 compared with $$31,329 million on Dec 31, 2019.

Cash from operating activities in first-quarter 2020 was $1,080 million compared with $1,044 million in the first quarter of 2019.

Guidance

Exelon lowered its 2020 earnings guidance to the range of $2.80-$3.10 from the prior expectation of $3.00-$3.30 per share. The midpoint of the above guided range is $2.95, lower than the current Zacks Consensus Estimate for the period of $3.00. Exelon identified $250 million in cost savings across its operating companies to partly offset the expected unfavorable impacts on operating revenues in the latter part of the year.

The company remains committed to invest $26 billion in the 2020-2023 time period to strengthen existing operations.

Zacks Rank

Exelon currently carries 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 first-quarter 2020 adjusted earnings of $2.38 per share, surpassing the Zacks Consensus Estimate of $2.21 by 7.7%.

FirstEnergy Corporation FE came up with first-quarter 2020 operating earnings of 66 cents per share, which beat the Zacks Consensus Estimate of 64 cents by 3.1%.

Dominion Energy Inc. D reported first-quarter 2020 operating earnings of $1.09 per share, missing the Zacks Consensus Estimate by a penny.

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