Exelon’s 3Q17 Earnings Missed Estimates



Profit fell on mild weather

The largest utility by revenue in the country, Exelon Corporation (EXC), declared its third quarter financial results on November 2, 2017. It reported adjusted earnings of $0.85 per share for the quarter ended on September 30, 2017, against its earnings of $0.91 per share in the same quarter last year. Wall Street analysts had estimated earnings of $0.86 per share for the quarter.

Exelon’s lower earnings resulted primarily from milder weather in the reported quarter. Exelon narrowed its 2017 full-year annual earnings guidance range from $2.50 to $2.80 per share earlier to $2.55 to $2.75 per share.

EXC eps

Earnings drivers

Exelon reported total revenues of $8.8 billion in the third quarter of 2017 against its revenues of $8.83 billion in the same quarter last year. It reported operating expenses of $7.3 billion during the quarter, which were 6% lower than in the comparable period last year. Lower spending on fuel and purchased power positively impacted Exelon’s bottom line in 3Q17.

Exelon’s Generation segment reported adjusted net profit of $347 million in the reported quarter against its $376 million profit in 3Q16. The lower profit was primarily due to the impact of lower load volumes delivered due to mild weather. Exelon also experienced lower realized electricity prices during 3Q17. This negative impact was partially offset by regulatory rate increases and zero emission credit revenues. Exelon announced its intention of $250 million in cost savings by 2020.

One of the largest utilities among peers (XLU), Southern Company (SO) reported its third-quarter earnings on November 1, 2017. It beat analysts’ 3Q17 earnings estimates. You can read more about its earnings in What Southern Company’s 3Q17 Earnings Mean for Investors.

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