Exelon (EXC) To Report Q4 Earnings: Is A Beat In Store?

We expect Exelon Corporation (NYSE:EXC) to pull off a positive earnings surprise when it reports fourth-quarter 2018 earnings on Feb 8, before the opening bell. The utility recorded in-line earnings in the last reported quarter.

Let’s see how things are shaping up prior to this announcement.

Why a Likely Positive Surprise?

Our proven model shows that Exelon is likely to beat estimates in the to-be-reported quarter because it has the right combination of the following two key ingredients — a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).

Earnings ESP: Exelon has an Earnings ESP of +0.10%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Exelon currently carries a Zacks Rank #3. Stocks with a solid Zacks Rank and a positive ESP have significantly higher chances of an earnings beat.

Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Factors to Consider

The Zacks Consensus Estimate for the fourth quarter is 58 cents per share, which reflects year-over-year growth of 5.5%. Exelon is expected to benefit from higher rate base and new rates associated with completed rate cases.

The company is undertaking some cost optimization programs, which in turn will lower operating and maintenance expenses. Its cost-management initiatives and operational efficiency are likely to have a positive impact on earnings.

Upcoming Releases

Here are a few other operators worth considering from the same industry, as these too have the right combination of elements to beat on earnings this reporting cycle.

Ameren Corporation (NYSE:AEE) is expected to release fourth-quarter results on Feb 14. It has an Earnings ESP of +1.68% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

ALLETE Inc. (NYSE:ALE) is expected to release fourth-quarter results on Feb 14. It has an Earnings ESP of +5.26% and a Zacks Rank of 2.

Pinnacle West Capital Corporation (NYSE:PNW) is expected to release fourth-quarter results on Feb 22. It has an Earnings ESP of +1.19% and a Zacks Rank of 2.

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