Constellation Energy (CEG +1.98%) will likely report its fourth-quarter and full-year financial results this week. While the power company hasn't officially announced a date, it will likely be before Feb. 20, given the past precedent.
Here's a look at whether you should invest in Constellation Energy before it reports earnings.
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A trip down memory lane
Constellation Energy last reported earnings on Nov. 7. The power producer delivered $3.04 per share of adjusted operating earnings, up from $2.74 per share in the year-ago period. CEO Joe Dominguez noted in the earnings press release that the company "achieved one of the highest operating quarters for our nuclear fleet." He also stated that, "we continue to execute well operationally and financially, supported by strong nuclear and commercial performance."
In addition to reporting solid earnings, Constellation Energy narrowed its full-year guidance range. It expects to generate adjusted earnings per share of $9.05 to $9.45 in 2025. With it producing $6.02 per share through the third quarter, Constellation will likely report fourth-quarter earnings of $3.03-$3.43 per share.
NASDAQ: CEG
Key Data Points
Shares of Constellation Energy didn't pop after it posted its strong third-quarter earnings. The energy stock bounced around for a bit before selling off this year:
Down despite multiple catalysts
Shares of Constellation Energy have slumped over the past few months, even though the power company has made significant progress on its expansion initiatives. The biggest was the $26.6 billion acquisition of Calpine, which closed in January. The deal created a much larger, more diversified power producer by combining Constellation's leading nuclear fleet with Calpine's industry-leading natural gas and geothermal assets. Constellation expects the deal will boost its earnings by more than 20% this year, which should reflect in its guidance when it releases its fourth-quarter results this week.
Constellation also announced a 380-megawatt agreement with data center developer CyrusOne. That company will build a new data center next to Constellation's Freestone Energy Center in Texas. It's the third agreement between the two companies, totaling 1.1 gigawatts of power.
Additionally, the U.S. Nuclear Regulatory Commission approved a license amendment request for the Limerick Clean Energy Center and license renewals for the Clinton and Dresden clean energy centers. That paves the way for over $500 million in investment in these facilities to modernize and upgrade them, ensuring their reliability in the coming decades.
The current sale might be coming to an end
Shares of Constellation Energy have slumped since it last reported earnings, even though the company closed its needle-moving Calpine Energy deal and secured several new growth investments. These catalysts support the company's strong growth expectations as it capitalizes on increasing power demand from data centers. With its share price down, buying the nuclear energy stock before it reports earnings might be a smart idea since shares could surge if it unveils strong guidance this week.
