BALTIMORE - Constellation Energy Corporation (NASDAQ: CEG) reported a significant increase in its first-quarter earnings, surpassing analyst expectations and issuing optimistic guidance for the full year of 2024.
The company's adjusted earnings per share (EPS) for the first quarter came in at $1.82, a substantial improvement over the $0.78 reported in the same period last year and exceeding the analyst estimate of $1.43. Revenue for the quarter was $6.16 billion, which did not meet the consensus estimate of $7.06 billion but still represented robust performance.
The company's stock responded positively to the news, rising 1.8%, which, while below the threshold for a significant market movement, indicates a favorable investor reaction to the earnings beat and upbeat future guidance.
Constellation's leadership credited the strong results to higher output from their generation fleet, supportive energy policies, and the strong performance of their commercial business.
For the full year of 2024, Constellation reaffirmed its adjusted EPS guidance range of $7.23 to $8.03, with the midpoint of $7.63 being above the analyst consensus of $7.41. This guidance reflects the company's confidence in its financial outlook and its ability to continue delivering shareholder value.
Constellation's President and CEO, Joe Dominguez, highlighted the growing support for nuclear energy as a reliable and clean source to meet the increasing demand from electric vehicles, heavy industry, and emerging technologies.
"The largest and most critical industries in America are coming to us to power their businesses with clean energy in every hour of every day, providing opportunities for sustainable growth as we lead the nation's transition to a clean-energy economy," Dominguez stated.
The company also emphasized its commitment to shareholders, having authorized an additional $1 billion for share repurchases under its existing program and deploying more than $500 million for share repurchases in the first quarter.
Additionally, Moody's (NYSE:MCO) upgraded Constellation's issuer credit rating from Baa2 to Baa1, reflecting confidence in the company's ability to maintain strong financial performance.
Constellation's CFO, Dan Eggers, remarked on the company's financial performance and strategic initiatives, "Delivering on our capital allocation priorities, the board expanded our share repurchase authorization by $1 billion, reinforcing confidence in Constellation's outlook."
As the nation's largest producer of clean, carbon-free energy, Constellation continues to invest in technologies to accelerate the transition to a carbon-free future, including issuing the nation's first corporate green bond that includes nuclear energy.
The company's nuclear fleet produced 45,391 gigawatt-hours (GWhs) in the first quarter of 2024, an increase from 42,463 GWhs in the first quarter of 2023, with a 93.3% capacity factor.
Constellation's financial and operational achievements in the first quarter of 2024 demonstrate its strong position in the clean energy sector and its ability to deliver value to shareholders and customers alike.
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