Exelon Corporation EXC is set to release fourth-quarter 2023 results on Feb 21, before the market opens. Last quarter, the company delivered a negative earnings surprise of 1.47%. Let’s dive into the factors that might shape the upcoming quarterly results.
Factors That Could Impact Results
For the fourth-quarter, Exelon’s earnings are anticipated to have gained from the new distribution rates implemented in its service territories in the preceding quarters. Additionally, the company’s bottom line is projected to have benefited from energy efficiency programs, its urban presence in densely-populated areas, as well as cost-saving initiatives.
Earnings Expectations
The Zacks Consensus Estimate for earnings stands at 58 cents per share, indicating a 34.88% increase from the prior-year levels. The consensus mark for revenues is pitched at $4.91 billion, up 5.1% from a year ago.
Earnings Prediction Model
Despite our proven model not conclusively predicting an earnings beat for Exelon this time around, we believe a combination of elements such as a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) generally heightens the chances of an earnings beat. Here, these conditions are not met, as shown below.
The company’s Earnings ESP currently stands at -0.69%, accompanied by a Zacks Rank of #4 (Sell).
Stocks to Watch
While anticipating Exelon’s results, investors may find the following players within the same sector worth considering:
ONE Gas (OGS), reporting its fourth-quarter 2023 earnings on Feb 21 after the market closes, is forecasted to beat earnings with an Earnings ESP of +0.26% and a Zacks Rank of 3. OGS’ long-term (three-to-five years) earnings growth rate is 5%. The Zacks Consensus Estimate for fourth-quarter earnings is projected at $1.27 per share, indicating a 3.25% increase from the year-ago levels.
Sempra Energy (SRE) is expected to beat earnings when it announces its fourth-quarter 2023 results on Feb 27, before the market opens. With an Earnings ESP of +1.18% and a Zacks Rank of 3 at present, the company’s long-term earnings growth rate is 4.95%. The Zacks Consensus Estimate for fourth-quarter earnings is estimated at $1.13 per share, representing a 4.24% decline from the year-earlier levels.
Southwest Gas (SWX) is also likely to outperform expectations when it reports fourth-quarter earnings on Feb 28, boasting an Earnings ESP of +1.45% and carrying a Zacks Rank of 3. SWX’s long-term earnings growth rate is 5%. The Zacks Consensus Estimate for fourth-quarter earnings is penned at 92 cents per share, signifying a 20.69% decrease from the year-ago actuals.
Stay tuned for upcoming earnings announcements with the Zacks Earnings Calendar.
