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Looking at Exelon’s Expected 2Q17 Earnings and Growth Prospects

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Exelon’s earnings

Exelon Corporation (EXC), the biggest hybrid utility by market cap in the United States, will report its 2Q17 results on August 2, 2017. According to analysts, Exelon is expected to see earnings per share (or EPS) of $0.54 in 2Q17. In the same quarter last year, it earned EPS of $0.65.

Exelon has given a 2017 EPS guidance range of $2.50–$2.80. In 2016, it had EPS of $2.68, indicating that it’s expecting flat to negative earnings growth this year.

EXC sps

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Earnings drivers

According to analysts, Exelon is expected to report total revenue of $7.6 billion in the quarter. In the same quarter last year, Exelon reported total revenue of $7.5 billion.

Exelon is the largest utility by revenue in the United States. It clocked total annual revenue of more than $31 billion in 2016.

Exelon, which has large exposure to competitive operations, has been increasing its regulated operations over the last few quarters. It has prominent regulated operations in Illinois, Pennsylvania, Delaware, and Washington. Exelon is expecting its regulated operations to grow 6%–8% over the next few years. Weather is expected to have a significant impact on Exelon’s regulated operations and revenue in 2Q17.

Exelon’s competitive operations have grappled with multiple challenges such as lower wholesale power prices, poor electricity demand growth, and increasing operating costs over the last few quarters. Exelon Generation’s weaker earnings in 1Q17 were partially offset by the revenue it received from New York and Illinois. This state aid could positively affect Exelon’s revenue in 2Q17 as well. To know more, read How Nuclear Generation Utilities Have Performed Recently.

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