Will Exelon (EXC) Fall Short Of Estimates In Q1 Earnings?
Zacks Investment Research | May 03, 2016 07:31AM ET
Exelon Corporation (NYSE:EXC) will release first-quarter 2016 financial results before the market opens on May 6, 2016. In the prior quarter, this electric and natural gas utility reported a negative earnings surprise of 2.56%. Let’s see how things are shaping up at the company prior to this announcement.
Factors to Consider
Amid difficult power market conditions, Exelon has resorted to cost reduction programs and expects to lower costs by $350 million in 2016.
At the same time, Exelon continues to invest in its transmission and distribution infrastructure, which ensures reliability of operations. Further, its regulated business provides a measure of certainty to its earnings stream. The company completed its much awaited merger with Pepco Holdings during the quarter and will invest nearly $25 billion in the next five years to strengthen its existing operations.
However, bonus depreciation is expected to have an adverse impact of 9 cents on Exelon’s earnings per share during 2016.
Surprise History
The above chart indicates that Exelon was able to deliver positive surprises in three out of the last four quarters. This led to an average positive surprise of 8.61%.
Earnings Whispers
Our proven model does not conclusively show that Exelon Corporation is likely to beat earnings estimates this quarter. That is because a stock needs to have both a positive Zacks Investment Research
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