Exelon Corp Earnings: Yet Another Quarter of Profitability

Falling revenue did not prevent S&P 500 (NYSE:SPY) component Exelon Corporation (NYSE:EXC) from reporting a profit boost in the fourth quarter. Exelon is a utility services holding company that distributes electricity and natural gas and is a major nuclear operator.

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Exelon Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the diversified utilities company rose to $606 million (91 cents per share) vs. $524 million (79 cents per share) in the same quarter a year earlier. This marks a rise of 15.6% from the year earlier quarter.

Revenue: Fell 5.4% to $4.25 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: EXC reported adjusted net income of 82 cents per share. By that measure, the company fell short of mean estimate of 88 cents per share. It fell short of the average revenue estimate of $4.8 billion.

Quoting Management: “Our full year 2011 operating earnings were within our guidance range, as well as above our original expectations for the year,” said John W. Rowe, Exelon’s chairman and CEO. “Despite the impact of adverse economic, market and weather conditions, we achieved our financial commitments and operational excellence across the company.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the first quarter, which saw revenue rise 13.2%.

The company fell short of forecasts after beating estimates in the previous two quarters. In the third quarter, it topped the mark by 3 cents, and in the second quarter, it was ahead by 8 cents.

Net income has increased 1.1% year over year on average across the last five quarters. The biggest gain came in the second quarter, when income climbed 39.3% from the year earlier quarter.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the first quarter of the next fiscal year is 82 cents per share, a drop from 84 cents. Over the past three months, the average estimate for the fiscal year has climbed from $4.18 per to share to $4.20.

Competitors to Watch: NextEra Energy, Inc. (NYSE:NEE), Entergy Corporation (NYSE:ETR), El Paso Electric Company (NYSE:EE), Constellation Energy Group, Inc. (NYSE:CEG), PPL Corporation (NYSE:PPL), ALLETE, Inc. (NYSE:ALE), FirstEnergy Corp. (NYSE:FE), Integrys Energy Group, Inc. (NYSE:TEG), and Xcel Energy Inc. (NYSE:XEL).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com