What's In The Offing For Exelon (EXC) This Earnings Season?

We expect Exelon Corporation (NASDAQ:EXC) to beat earnings estimates when it reports third-quarter 2019 results on Oct 31, 2019. The company came up with a negative earnings surprise of 4.76% in the last reported quarter.

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for Exelon this time around. A stock needs to have both a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. That is the case here as you will see below.

Earnings ESP: The company’s Earnings ESP is +0.06%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Exelon carries a Zacks Rank #3.

Factors at Play

Higher demand for electricity in July due to extreme heat in its service territories and solid production from nuclear plants are likely to have had a positive impact on third-quarter earnings.

The shutdown of the Three Mile Island nuclear plant during the quarter might have saved the company from incurring high costs on this non-profitable unit and boosted margins.

Exelon expects third-quarter earnings in the range of 80-90 cents per share. The bottom line was 88 cents in the year-ago period. The Zacks Consensus Estimate for the same is pegged at 88 cents, indicating no change from the year-ago reported figure.

Stocks to Consider

In addition to Exelon, here are a few other companies worth considering from the same industry that have the right combination of elements to beat on earnings in the third quarter.

PNM Resources Inc. (NYSE:PNM) is scheduled to release quarterly results on Nov 1. It has an Earnings ESP of +1.99% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Pattern Energy Group Inc. (NASDAQ:PEGI) is set to release quarterly numbers on Nov 4. It has an Earnings ESP of +2,100.00% and carries a Zacks Rank #2.

Eversource Energy (NYSE:ES) is slated to release quarterly results on Nov 5. It has an Earnings ESP of +1.06% and a Zacks Rank #2.

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