Exelon Corporation EXC reported third-quarter 2015 adjusted operating earnings of 83 cents per share, surpassing both the Zacks Consensus Estimate and year-ago earnings by 17% and 6.4%, respectively.
Exelon Corporation - Earnings Surprise | FindTheBest
The improvement in quarterly earnings was attributable to higher revenue net of purchased power and fuel at the Generation business, favorable weather conditions at Commonwealth Edison Company (“ComEd”) and PECO Energy Company (“PECO”), higher distribution earnings at ComEd and Baltimore Gas and Electric (“BGE”) and lower storms cost at BGE.
On a GAAP basis, quarterly earnings were 69 cents per share compared with $1.15 per share a year ago. The difference between GAAP and adjusted operating earnings was due to the combined impact of one-time charges of 26 cents and gains of 12 cents.
Total Revenues
Exelon's total operating revenues of $7,412 million surpassed the Zacks Consensus Estimate of $7,131 million by 3.9%. Quarterly revenues increased 11.2% year over year primarily owing to synergies from the Integrys acquisition and increased load served.
Quarterly Highlights
Exelon's total operating expenses increased 11.2% year over year to $6,058 million, primarily due to higher purchased power and fuel costs, depreciation and amortization, taxes other than income and operating and maintenance expenses.
The company reported an operating income of $1,356 million in the quarter, up 10.5% from $1,227 million a year ago.
Interest expenses increased 13.2% year over year to $265 million on higher long-term debt.
Financial Position
As of Sep 30, 2015, Exelon's cash and cash equivalents were $7,265 million compared with $1,878 million at the end of 2014. Long-term debt as of Sep 30, 2015, totaled $24,541 million, up from $19,362 million as of Dec 31, 2014.
In the first nine months of 2015, net cash flow from operating activities was $5,674 million compared with $3,643 million in the year-ago period. Exelon's capital expenditure was $5,443 million compared with $4,114 million in the first nine months of 2014.
Hedges
Exelon's hedging program involves hedging of commodity risks for expected generation, typically on a ratable basis, over a three-year period. The proportion of expected generation hedged as of Sep 30, 2015 was 97–100% for 2015, 81–84% for 2016, and 51–54% for 2017.
Guidance
Exelon raised its 2015 adjusted earnings per share guidance to the range of $2.40 to $2.60 from the prior guidance of $2.35 to $2.55.
Merger Update
Exelon’s merger with Pepco Holdings Inc. POM is on course and is expected to be complete by the first quarter of 2016, subject to approval by the Public Service Commission of the District of Columbia.
Upcoming Peer Releases
Alliant Energy Corp. LNT is slated to release third-quarter results on Nov 5, 2015. The Zacks Consensus Estimate is $1.58.
Duke Energy Corp. DUK plans to release third-quarter results on Nov 5, 2015. The Zacks Consensus Estimate is $1.52.
Zacks Rank
Exelon currently has a Zacks Rank #2 (Buy).
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