Dominion Resources, Inc. (D), Exelon Corporation (EXC): Will The Big Bounce Last?

Page 1 of 2

Exelon Corporation (NYSE:EXC)On Wednesday, Exelon Corporation (NYSE:EXC) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

As the biggest operator of nuclear power plants in the country, Exelon Corporation (NYSE:EXC) had a big competitive advantage over its fossil-fuel-focused rivals when coal and natural gas prices were high. In recent years, though, low nat-gas prices have largely left Exelon behind. Let’s take an early look at what’s been happening with Exelon Corporation (NYSE:EXC) over the past quarter and what we’re likely to see in its quarterly report.

Stats on Exelon

Analyst EPS Estimate $0.68
Change From Year-Ago EPS (20%)
Revenue Estimate $6.18 billion
Change From Year-Ago Revenue 28%
Earnings Beats in Past 4 Quarters 2

Source: Yahoo! Finance.

Will Exelon justify its big share-price rebound this quarter?
Over the past few months, analysts have cut back on their views of Exelon Corporation (NYSE:EXC)’s earnings potential. They reduced their earnings-per-share calls by a nickel not just for the first quarter but for the full 2013 and 2014 years as well. But the stock has been on a roller-coaster ride, gaining more than 25% since late January after falling roughly the same amount during the fourth quarter of 2012.

The big news for Exelon investors during the quarter came in February, when the company announced its fourth-quarter earnings. The utility posted revenue that was well short of the growth that investors had expected after Exelon Corporation (NYSE:EXC)’s merger with Constellation Energy last year. Even worse, Exelon guided down its 2013 earnings per share from $2.85 in 2012 to a range of $2.35-$2.65 for 2013, and slashed its dividend by 40%.

What’s arguably more troubling is the relative lack of a firm growth strategy for Exelon. Rival NextEra Energy, Inc. (NYSE:NEE) expects to spend an average of almost $6 billion per year over the next four years on projects designed to increase earnings and therefore dividend payout potential, while Dominion Resources, Inc. (NYSE:D) is aiming to produce 5%-6% earnings growth per year by spending $3 billion annually on new utility projects. By contrast, Exelon Corporation (NYSE:EXC)’s spending on solar is relatively small and its investment on wind is almost nonexistent.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!