Valued at a market cap of $40.6 billion, Exelon Corporation (EXC) is a utility services holding company that engages in energy distribution and transmission businesses. The Chicago, Illinois-based company also offers various support services, including legal, human resources, information technology, and supply management to name a few. It is expected to announce its fiscal Q4 earnings results before the market opens on Wednesday, Feb. 12.
Ahead of this event, analysts expect the utility company to report a profit of $0.60 per share, in line with the year-ago quarter figure. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion. In Q3, EXC’s adjusted EPS of $0.71 outpaced the consensus estimates by a margin of nearly 6%.
For fiscal 2024, analysts expect EXC to report an EPS of $2.46, up 3.4% from a profit of $2.38 in fiscal 2023.
Shares of Exelon have gained 12.5% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 25.5% rise, and the Utilities Select Sector SPDR Fund’s (XLU) 29.1% return over the same time frame.
On Oct. 30, EXC’s shares marginally increased after its better-than-expected Q3 earnings release. Despite challenging weather conditions, the company’s revenue increased 6% year-over-year to $6.2 billion and surpassed the Wall Street estimates by 1.3%. Meanwhile, its adjusted EPS of $0.71 improved 2.9% from the year-ago quarter and outpaced the forecasted figure by a notable margin of 6%. Exelon’s disciplined approach to financial management, combined with operational excellence favored its results.
Moreover, noting its strategic investments in energy infrastructure, the company reaffirmed its full-year 2024 adjusted EPS guidance in the range of $2.40-$2.50.
Wall Street analysts are moderately optimistic about EXC’s stock, with a "Moderate Buy" rating overall. Among 18 analysts covering the stock, six recommend "Strong Buy," 11 recommend “Hold,” and one indicates a “Strong Sell” rating. This configuration is slightly more bullish than three months ago, with five analysts suggesting a “Strong Buy.” The mean price target for Exelon is $42.93 which indicates a modest 9.5% potential upside from the current levels.
