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A month has gone by since the last earnings report for Exelon (EXC). Shares have lost about 3.4% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Exelon due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Exelon's Q1 Earnings In Line, Revenues Beat Estimates
Exelon Corporation’s first-quarter 2019 operating earnings of 87 cents per share were on par with the Zacks Consensus Estimate. However, the reported earnings were 9.4% lower than the year-ago figure of 96 cents.
The year-over-year decline in earnings was primarily due to lower realized energy prices.
On a GAAP basis, its quarterly earnings were 93 cents per share compared with 60 cents in the year-ago quarter.
Total Revenues
Exelon's total revenues of $9,477 million surpassed the Zacks Consensus Estimate of $9,395 million by 0.9%. However, the top line declined 2.3% from the year-ago quarter. The year-over-year decline in revenues was due lower contribution from Generation and ComEd businesses.
Highlights of the Release
Exelon's total operating expenses decreased 4.5% year over year to $8,262 million. The decline in total expenses was due to lower power and fuel costs, as well as operating and maintenance expenses.
Interest expenses were $403 million, up 8.6% from $371 million in the year-ago quarter.
In the reported quarter, the company efficiently serviced more electric and natural gas customers than the year-ago period.
Hedges
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 Mar 31, 2019 was 90-93% for 2019, 64-67% for 2020 and 38-41% for 2021.
Financial Highlights
Cash and cash equivalents were $880 million as of Mar 31, 2019 compared with $1,349 million on Dec 31, 2018.
Long-term debt was $32,960 million as of Mar 31, 2019 compared with $34,075 million on Dec 31, 2018.
Cash from operating activities in the first quarter was $1,044 million compared with $1,052 million in the year-ago period.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -6.91% due to these changes.
VGM Scores
Currently, Exelon has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.