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Exelon Misses 4Q15 Earnings but Beats Revenue Estimates

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4Q15 earnings

Exelon (EXC) declared its 4Q15 results on February 3, 2016. It missed earnings but beat revenues compared to analysts’ estimates. Exelon’s operating earnings fell to $0.38 per share in 4Q15 compared to $0.48 per share in 4Q14.

Adverse weather conditions negatively affected EXC’s earnings at its utilities. Exelon’s Generation segment also suffered due to increased outages during the quarter.

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Performance drivers

EXC’s utilities business saw the positive impact of increased capital investment in its transmission and distribution segments during the quarter. Increased rates at the Commonwealth Edison and PECO Energy facilities contributed positively to EXC’s performance. This contribution was partially offset by higher operations and maintenance costs.

Exelon Generation experienced unfavorable impacts due to increased nuclear outages. The total number of planned refueling outage days was 103 in 4Q15 compared to 97 in 4Q14.

For 2015, Exelon’s operating earnings were $2.2 billion, or $2.49 per share, compared to $2 billion, or $1.88 per share, in 2014. This accounts for just over 3% earnings growth on a yearly basis.

2016 guidance

Exelon’s management has provided 2016 earnings guidance in the range of $2.40–$2.70 per share, with solid performance expectations from its utilities (VPU) segment. Aggressive cost management initiatives are expected to save nearly $350 million in the long term. Continued capital investment and rate increases are expected to be the company’s primary growth drivers in the future.

Exelon’s peer utilities (FXU) FirstEnergy (FE) and Public Service Enterprise Group (PEG) are expected to report their 4Q15 earnings on February 16 and February 19, respectively.

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