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

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

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!