By Tess Stynes
Exelon Corp.'s (EXC) third-quarter earnings surged as the
nuclear-power producer benefited from positive hedging impacts and
lower costs.
The company narrowed its per-share earnings estimate for the
year to $2.40 to $2.60, from its previous estimate for $2.35 to
$2.65.
Exelon, the largest owner and operator of nuclear-power plants
in the U.S., acquired Constellation Energy Group last year in an $8
billion deal that added a growing retail power business in states
such as Texas, New Jersey and Pennsylvania.
The company's wholesale power business has continued to struggle
as power prices have remained low for a prolonged period and demand
has been flat.
In the latest quarter, the company's generating segment's
adjusted earnings fell 10% amid lower realized market prices and
higher nuclear fuel costs.
Exelon reported a profit of $736 million, or 86 cents a share,
up sharply from $297 million, or 35 cents, a year earlier.
Excluding mark-to-market impacts, year-earlier impacts related to
the sale or retirement of generating plants, as well as other
items, adjusted earnings were up at 78 cents from 77 cents. Revenue
decreased 1.2% to $6.5 billion.
Analysts polled by Thomson Reuters recently expected per-share
earnings of 66 cents and revenue of $6.2 billion.
Expenses for purchased power and fuel dropped 9.4%. Operating
and maintenance costs declined 20%.
Shares closed Tuesday at $28.05 and were inactive in recent
premarket trading. Through Tuesday's close, the stock is down 5.7%
this year.
Write to Tess Stynes at tess.stynes@wsj.com
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