UPDATE: Exelon Earnings: Booking a Profit Again

S&P 500 (NYSE:SPY) component Exelon Corporation (NYSE:EXC) reported its results for the first 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 First Quarter

Results: Net income for the utility-electric power fell to $200 million (28 cents per share) vs. $668 million ($1.01 per share) a year earlier. This is a decline of 70.1% from the year-earlier quarter.

Revenue: Fell 7.2% to $4.69 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Exelon Corporation reported adjusted net income of 85 cents per share. By that measure, the company beat the mean estimate of 81 cents per share. It fell short of the average revenue estimate of $7.67 billion.

Quoting Management: “As expected, our lower operating earnings for first quarter 2012 reflected unfavorable market factors and mild weather,” said Christopher M. Crane, Exelon’s president and CEO. “However, I am pleased with our continued strong operational performance, such as the 93.6 percent capacity factor achieved by our nuclear operations. In the quarter’s most significant news, we successfully closed our merger with Constellation Energy on March 12 after securing all required regulatory approvals, less than one year after we first announced the transaction, and integration activities are progressing extremely well.”

Key Stats:

The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of 82 cents versus a mean estimate of net income of 88 cents per share.

Net income has dropped 11% year-over-year on average across the last five quarters. Performance was hurt by a 70.1% decline in the most recent quarter from the year-earlier quarter.

Revenue has dropped in the past two quarters. In the fourth quarter of the last fiscal year, revenue declined 11.2% to $3.99 billion from the year-earlier quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the second quarter has moved up from 72 cents a share to 73 cents over the last thirty days. The average estimate for the fiscal year is now $3 per share, down from $3.06 sixty days ago.

Competitors to Watch: NextEra Energy, Inc., Entergy Corporation, El Paso Electric Company, Constellation Energy Group, Inc., PPL Corporation, ALLETE, Inc., FirstEnergy Corp., Integrys Energy Group, Inc., and Xcel Energy Inc.

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

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