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Exelon (EXC) Down 7.2% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Exelon (EXC). Shares have lost about 7.2% in that time frame, underperforming 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 drivers.

Exelon Q1 Earnings & Sales Beat Estimates, Rise Y/Y

Exelon Corporation’s first-quarter 2023 earnings of 70 cents per share surpassed the Zacks Consensus Estimate of 66 cents by 6.1%. The earnings of the company improved 9.4% from the year-ago level.

On a GAAP basis, first-quarter earnings were 67 cents per share compared with 49 cents in the year-ago quarter.

Total Revenues

Exelon's first-quarter total revenues of $5,563 million surpassed the Zacks Consensus Estimate of $5,519 million by 0.8%. The top line was 4.4% higher than the year-ago figure of $5,327 million.

Highlights of the Release

Exelon's first-quarter total operating expenses increased 0.7% year over year to $4.46 billion. The increase was due to higher power and fuel prices.

Operating income was $1,106 million, up 22.9% year over year.

Interest expenses totaled $412 million, up 21.9% from the year-ago quarter.

Financial Highlights

Cash and cash equivalents were $522 million as of Mar 31, 2023 compared with $407 million as of Dec 31, 2022.

Long-term debt was $38,732 million as of Mar 31, 2023 compared with $35,272 million as of Dec 31, 2022.
 
Cash provided by operating activities during the first three months of 2023 was $484 million compared with $1,782 million in the corresponding period of 2022.

Guidance

Exelon reiterated 2023 earnings guidance in the range of $2.30-$2.42 per share. The midpoint of the guided range is $2.36, which is higher than the Zacks Consensus Estimate of $2.35 per share for the same period. The company reaffirmed 6-8% long-term earnings per share growth for the 2022-2026 time period.

Exelon expects its capital expenditure for the 2023-2026 time period to be $31.3 billion to meet customer requirements and further strengthen its transmission and distribution operations.

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How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month.

VGM Scores

Currently, Exelon has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Exelon has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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