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Is a Beat in Store for Exelon (EXC) This Earnings Season?

We expect Exelon CorporationEXC to pull off a positive earnings surprise when it reports third-quarter 2018 earnings on Nov 1. The utility delivered an earnings surprise of 16.39% in the last reported quarter.

The company's bottom line also surpassed the Zacks Consensus Estimate in two of the last four quarters, the average beat being 1.79%.

Let's see how things are shaping up prior to this announcement.

Exelon Corporation Price and EPS Surprise

Exelon Corporation Price and EPS Surprise | Exelon Corporation Quote

Why a Likely Positive Surprise?

Our proven model shows that Exelon is likely to beat estimates because it has the right combination of the following two key ingredients - a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.

Earnings ESP: Exelon has an Earnings ESP of +0.27%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Zacks Rank: Exelon carries a Zacks Rank #2, which increases the predictive power of ESP. Stocks with a solid Zacks Rank and a positive ESP significantly have higher chances of an earnings beat.

Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Factors to Consider

The company expects to generate operating earnings of 80-90 cents per share in the third quarter compared with 85 cents reported in the comparable quarter last year. Also, the consensus estimate for the quarterly earnings is pegged at 86 cents per share.

The company is undertaking some cost optimization programs which in turn, will lower the company's operating and maintenance expenses. The company is likely to benefit from its cost management initiatives through improved efficiency as well as productivity.

We expect the company will continue to benefit from new rates, which are implemented earlier this year.

Upcoming Releases

Here are a few other operators worth considering from the same industry with the right combination of elements to also beat on earnings this reporting cycle.

Public Service Enterprise Group Incorporated PEG is expected to release third-quarter results on Oct 30. It has an Earnings ESP of +1.90% and a Zacks Rank #3.

Dominion Energy Inc D is expected to release third-quarter results on Nov 1. It has an Earnings ESP of +2.22% and a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here .

Alliant Energy Corporation LNT is expected to release third-quarter results on Nov 6. It has an Earnings ESP of +1.19% and a Zacks Rank of 3.

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Exelon Corporation (EXC): Free Stock Analysis Report

Public Service Enterprise Group Incorporated (PEG): Free Stock Analysis Report

Dominion Energy Inc. (D): Free Stock Analysis Report

Alliant Energy Corporation (LNT): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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