Constellation Energy Corporation (CEG) came out with quarterly earnings of $2.56 per share, beating the Zacks Consensus Estimate of $0.78 per share. This compares to loss of $0.34 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 228.21%. A quarter ago, it was expected that this company would post earnings of $0.86 per share when it actually produced earnings of $0.29, delivering a surprise of -66.28%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Constellation Energy Corporation
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Constellation Energy Corporation shares have added about 10.8% since the beginning of the year versus the S&P 500's gain of 17.6%.
What's Next for Constellation Energy Corporation?
While Constellation Energy Corporation has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Constellation Energy Corporation: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.42 on $6.8 billion in revenues for the coming quarter and $4.25 on $23.9 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Alternative Energy - Other is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Crescent Energy (CRGY), is yet to report results for the quarter ended June 2023. The results are expected to be released on August 9.
This oil and gas company is expected to post quarterly earnings of $0.08 per share in its upcoming report, which represents a year-over-year change of -98.5%. The consensus EPS estimate for the quarter has been revised 58.2% lower over the last 30 days to the current level.
Crescent Energy's revenues are expected to be $470 million, down 48.3% from the year-ago quarter.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>Constellation Energy Corporation (CEG) : Free Stock Analysis Report
Crescent Energy Company (CRGY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
