We reiterate our Neutral recommendation on
) considering the impacts of Hurricane Sandy, commodity price
risks, stringent regulations and depressed margins in its
Generation business. However, these negatives are expected to be
offset by the company's strong cash and liquidity position,
capital realignment strategy and steady focus on expansion of the
As a consequence of the recently occurred Hurricane Sandy,
Exelon spent substantial amount to repair its existing facilities
and construct new utility delivery systems in Pennsylvania and
Maryland. This unexpected expenditure will affect the company's
forthcoming financial performance.
Further, wholesale power prices are determined by supply and
demand of utilities, which primarily depends on the fuel prices,
particularly coal and natural gas prices. Fluctuations in the
wholesale power prices are expected to impact Exelon's financial
On the flip side, completion of merger with Constellation has
benefited Exelon's results, and we expect the company to realize
further synergies moving forward. The company expects to achieve
$170 million of merger-related operations and maintenance
synergies in 2012, which is expected to reach $550 million by the
end of 2013. This merger will boost the company's position in
terms of load and customer base.
Chicago, Illinois-based Exelon Corporation engages in
generation, transmission, distribution and sale of electricity to
the residential, commercial, industrial and wholesale
In third-quarter 2012, Exelon's bottom line surpassed the
Zacks Consensus Estimate, though the top line missed the same.
The Zacks Consensus Estimate for fourth quarter 2012 is currently
66 cents per share, down 20.05% year over year and the Zacks
Consensus Estimate for full year is 2.86 per share, down 31.23%
year over year.
With a market capitalization of $25.15 billion, the company
has 19,267 full time employees. Like its peer
), Exelon Corporation also has a short-term Zacks #3 Rank (Hold
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EXELON CORP (EXC): Free Stock Analysis Report
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