) announced first-quarter 2014 adjusted operating earnings of 62
cents per share, missing the Zacks Consensus Estimate by 10.1%.
AMER ELEC PWR (AEP): Free Stock Analysis
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EXELON CORP (EXC): Free Stock Analysis Report
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Quarterly earnings plunged 11.4% year over year due to extreme
weather conditions in its service territories which created
On a GAAP basis, quarterly earnings were 10 cents per share
compared with a loss of 1 cent per share a year ago.
The difference between GAAP and adjusted operating earnings of 52
cents was primarily due to the combined impact of a 52 cent
mark-to-market loss from economic hedging activities, a 1 cent
merger and integration related cost and a 4 cent charge for the
amortization of commodity contract intangibles. One-time gains
included 1 cent from Decommissioning Trust (NDT) Fund Investments
and 4 cents from tax adjustments.
In first-quarter 2014, Exelon's total operating revenues of $8.1
billion beat the Zacks Consensus Estimate by 43.1%.
Quarterly revenues were 17.3% higher than the comparable year-ago
: Segment revenues in the first quarter were $5.24 billion, up
20.1% year over year.
Commonwealth Edison Company
("ComEd"): Revenues in the first quarter were $1.13 billion, down
2.2% from the year-ago period.
PECO Energy Company
("PECO"):First quarter revenues of $0.99 billion jumped 10.9%
from the year-ago period.
Baltimore Gas and Electric
( "BGE" ):Segment revenues were $1.05 billion, up 19.8% from the
In the quarter under review, Exelon's total operating expenses
increased 23.2% year over year to $7.1 billion, mainly due to an
increase in purchase power and fuel expenses as well as operating
and maintenance expenses.
The rise in total operating expenses, primarily due to tough
weather conditions, took a toll on the operating income of the
company. Operating income of $0.96 billion was down 14.8% year
In the first quarter, the company supplied/sold total electricity
of 59,572 Gigawatt hours, down 5.4% year over year.
As of Mar 31, 2014, Exelon's cash balance was $0.79 billion
compared with $1.5 billion at the end of 2013.
Long-term debt as of Mar 31, 2014 totaled $18.3 billion, up from
$17.3 billion as of Dec 31, 2013.
In the first three months of 2014, net cash flows provided by
operating activities were $0.16 million versus $0.86 billion in
the year-ago comparable period.
Exelon's capital expenditure was $1.21 billion in first quarter
2014 compared with $1.45 billion a year ago.
Exelon's hedging program involves hedging of the 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, 2014, is 91%-94% for 2014, 64%- 67% for 2015, and
37%-40% for 2016.
Other Company Release
American Electric Power Co., Inc.
) earnings per share of $1.15 in the first quarter 2014 surpassed
the Zacks Consensus Estimate of 91 cents by 26.37%.
) reported first-quarter earnings of $2.29 per share, beating the
Zacks Consensus Estimate by 8.5%
CMS Energy Corporation
) posted first-quarter 2014 earnings per share of 75 cents,
beating the Zacks Consensus Estimate of 64 cents by 17.2%.
Utility operators have mostly been recording earnings beats this
season thanks to a severe U.S. winter. Exelon was however not so
lucky -- lower realized energy prices, higher procurement costs
for replacement power and increased storm costs ate into margins
and profitability. Also, downtime at its nuclear units in the
reported quarter hampered production.
That said, Exelon's focus om increasing its renewable power
generation capability is appreciable. Exelon Corporation (EXC)
holds a Zacks Rank #2 (Buy).