Baltimore, Maryland-based Constellation Energy Corporation (CEG) generates and sells electricity in the United States. With a market cap of $85.5 billion, it operates as the largest producer of carbon-free energy across the continental U.S. The company is expected to release its Q3 earnings before the market opens on Monday, Nov. 4.
Ahead of the event, analysts expect Constellation Energy to report a profit of $2.50 per share, up 10.6% from $2.26 per share reported in the year-ago quarter. The company has surpassed Wall Street’s adjusted EPS projections in three of the past four quarters while missing on another occasion. Its adjusted EPS for the last reported quarter declined 34.3% year-over-year to $1.68 but exceeded the consensus estimates by 17.5%.
For fiscal 2024, analysts expect Constellation Energy to report an adjusted EPS of $7.95, up 58.7% from $5.01 in fiscal 2023.
CEG stock has climbed 132% on a YTD basis, significantly outperforming the S&P 500 Index’s ($SPX) 22.5% gains and the Utilities Select Sector SPDR Fund’s (XLU) 28.7% returns during the same time frame.
Shares of Constellation Energy surged 6.5% after the release of its better-than-expected Q2 earnings on Aug. 6. The company raised its full-year profit forecast to a range of $7.60 per share to $8.40 per share, surpassing analysts' estimate. Additionally, higher electricity output from its nuclear fleet and fewer outage days helped improve operational performance, further boosting investor confidence. Moreover, the stock skyrocketed 22.3% on Sept. 20 after the company signed its largest-ever power purchase agreement with Microsoft, which entails the launch of the Crane Clean Energy Center and restart of Three Mile Island Unit 1, which was shut down five years ago for economic reasons.
The consensus opinion on CEG stock is moderately bullish, with an overall “Moderate Buy” rating. Of the 18 analysts covering the stock, 11 recommend a “Strong Buy” and seven advise a “Hold” rating. As of writing, CEG is trading below the mean price target of $280.70.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
