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Revenue Beat: Exelon Corporation Exceeded Revenue Forecasts By 16% And Analysts Are Updating Their Estimates

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Exelon Corporation (NASDAQ:EXC) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results were mixed, with revenues of US$5.3b exceeding expectations, even as earnings per share (EPS) came up short. Statutory earnings were US$0.61 per share, -4.1% below whatthe analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Exelon

earnings-and-revenue-growth
earnings-and-revenue-growth

After the latest results, the consensus from Exelon's twelve analysts is for revenues of US$18.0b in 2022, which would reflect a concerning 51% decline in sales compared to the last year of performance. Statutory earnings per share are predicted to soar 31% to US$2.26. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$18.0b and earnings per share (EPS) of US$2.23 in 2022. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$49.53. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Exelon analyst has a price target of US$55.00 per share, while the most pessimistic values it at US$41.00. This is a very narrow spread of estimates, implying either that Exelon is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. Over the past five years, revenues have declined around 0.7% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 62% decline in revenue until the end of 2022. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.7% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Exelon to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Exelon going out to 2024, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 4 warning signs for Exelon you should be aware of, and 1 of them is significant.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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