Constellation Energy Group Inc. Earnings Cheat Sheet: Swing to a Profit but Still Misses Estimates

S&P 500 (NYSE:SPY) component Constellation Energy Group Inc. (NYSE:CEG) reported its results for the third quarter. Constellation Energy Group is an energy company that provides energy solutions and electric transmission through its subsidiaries.

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Constellation Energy Group Earnings Cheat Sheet for the Third Quarter

Results: Reported a profit of $73.7 million (36 cents per diluted share) in the quarter. Constellation Energy Group Inc. had a net loss of $1.41 billion or a loss $6.99 per share in the year earlier quarter.

Revenue: Fell 11.3% to $3.52 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CEG reported adjusted net income of 68 cents per share. By that measure, the company fell short of mean estimate of 89 cents per share. It fell short of the average revenue estimate of $4.45 billion.

Quoting Management: “Our core businesses are performing well in a competitive price environment, benefitting in particular from strong results in our wholesale load serving business. We continue to make headway with our strategy to combine cost-effective conventional and renewable energy supply with an integrated mix of innovative energy management products and solutions,” said Mayo A. Shattuck III, chairman, president and chief executive officer of Constellation Energy.

Key Stats:

The company has now missed analyst estimates for the last four quarters. It fell short by 6 cents in the second quarter, by 33 cents in the first quarter, and by 15 cents in the fourth quarter of the last fiscal year.

Revenue fell last quarter after seeing a rise the quarter before. Revenue rose 1.5% to $3.36 billion in the second quarter from the year earlier.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 65 cents per share, up from 52 cents ninety days ago. For the fiscal year, the average estimate has moved down from $3.21 a share to $3.16 over the last ninety days.

Competitors to Watch: Calpine Corporation (NYSE:CPN), NRG Energy, Inc. (NYSE:NRG), Dynegy Inc. (NYSE:DYN), Exelon Corporation (NYSE:EXC), ALLETE, Inc. (NYSE:ALE), ITC Holdings Corp. (NYSE:ITC), Integrys Energy Group, Inc. (NYSE:TEG), The AES Corporation (NYSE:AES), Pepco Holdings, Inc. (NYSE:POM), and American Electric Power Co., Inc. (NYSE:AEP).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)