Exelon (EXC) Q2 Earnings Surpass Estimates, Revenues Miss
Exelon Corporation’s EXC second-quarter 2020 operating earnings of 55 cents per share surpassed the Zacks Consensus Estimate of 42 cents by 30.9%. The reported earnings were 8.3% lower than the year-ago figure owing to the COVID-19 pandemic and lower utility earnings, primarily attributed to higher storm costs at PECO.
On a GAAP basis, quarterly earnings were 53 cents per share compared with 50 cents in the year-ago quarter.
Exelon's total revenues of $7,322 million lagged the Zacks Consensus Estimate of $7,437 million by 1.5%. The top line also declined 4.8% from the year-ago figure of $7,689 million.
Exelon Corporation Price, Consensus and EPS Surprise
Highlights of the Release
Exelon's total operating expenses decreased 1.6% year over year to $6,769 million. The decline in total expenses was due to lower purchased power and fuel costs.
Interest expenses were $427 million, up 4.4% from $409 million in the year-ago quarter.
The company efficiently served 0.9% and 1.2% more electric and natural gas customers, respectively, than first-half 2019 levels. Exelon Generations’ nuclear fleet capacity factor was 95.4% for the quarter compared with 95.1% in the year-ago period.
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, 2020 was 98-101% for 2020 and 76-79% for 2021.
Cash and cash equivalents were $2,129 million as of Jun 30, 2020 compared with $587 million on Dec 31, 2019.
Long-term debt was $36,112 million as of Jun 30, 2020 compared with $$31,329 million on Dec 31, 2019.
Cash from operating activities for first-half 2020 was $2,680 million compared with $2,898 million in the first half of 2019.
Exelon reaffirmed its 2020 earnings guidance in the range of $2.80-$3.10 per share. The midpoint of the above guided range is $2.95, in line with the Zacks Consensus Estimate for the period. The company 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.
Exelon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dominion Energy Inc. D reported second-quarter 2020 operating earnings of 82 cents per share, which beat the Zacks Consensus Estimate by a penny.
NextEra Energy, Inc. NEE reported second-quarter 2020 adjusted earnings of $2.61 per share, which surpassed the Zacks Consensus Estimate of $2.50 by 4.4%.
Edison International EIX reported second-quarter 2020 adjusted earnings of $1.00 per share, which missed the Zacks Consensus Estimate of $1.11 by 9.9%.
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