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Exelon Increases Sales but Misses Estimates on Earnings

By Seth Jayson - Updated Apr 10, 2017 at 12:29PM

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Just the facts, Fool.

Exelon (NYSE: EXC) reported earnings on July 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Exelon beat expectations on revenues and missed slightly on earnings per share.

Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share contracted. GAAP earnings per share grew significantly.

Margins increased across the board.

Revenue details
Exelon chalked up revenue of $5.88 billion. The seven analysts polled by S&P Capital IQ expected revenue of $5.76 billion on the same basis. GAAP reported sales were 3.1% higher than the prior-year quarter's $5.95 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

EPS details
EPS came in at $0.53. The 20 earnings estimates compiled by S&P Capital IQ predicted $0.54 per share. Non-GAAP EPS of $0.53 for Q2 were 13% lower than the prior-year quarter's $0.61 per share. GAAP EPS of $0.57 for Q2 were 73% higher than the prior-year quarter's $0.33 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

Margin details
For the quarter, gross margin was 29.8%, 370 basis points better than the prior-year quarter. Operating margin was 16.7%, 310 basis points better than the prior-year quarter. Net margin was 8.0%, 320 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $6.46 billion. On the bottom line, the average EPS estimate is $0.68.

Next year's average estimate for revenue is $24.26 billion. The average EPS estimate is $2.48.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,847 members out of 1,914 rating the stock outperform, and 67 members rating it underperform. Among 413 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 398 give Exelon a green thumbs-up, and 15 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Exelon is hold, with an average price target of $34.85.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month. The Motley Fool recommends Exelon. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Exelon Corporation Stock Quote
Exelon Corporation
EXC
$46.14 (-0.37%) $0.17

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