Group 1 - Exelon (EXC) is currently outperforming its peers in the Utilities sector with a year-to-date return of 23.5%, compared to the sector average of 6.7% [4] - Exelon holds a Zacks Rank of 2 (Buy), indicating positive analyst sentiment and an improving earnings outlook, with a 2.4% increase in the consensus estimate for its full-year earnings over the past quarter [3] - The Utilities sector, which includes 106 individual stocks, ranks 1 in the Zacks Sector Rank, reflecting strong overall performance [2] Group 2 - Exelon is part of the Utility - Electric Power industry, which consists of 60 companies and currently ranks 41 in the Zacks Industry Rank, with an average gain of 7.2% year-to-date [5] - Another notable stock in the Utilities sector is Tele2 (TLTZY), which has seen a year-to-date increase of 51.8% and also holds a Zacks Rank of 2 (Buy) [4] - The Wireline Non-US industry, to which Tele2 belongs, is ranked 3 but has experienced a decline of 27.1% year-to-date [5]

Group 1 - Exelon Corporation (NASDAQ: EXC) was previously identified as a buy due to its superior performance compared to other utilities across various metrics [1] - The analysis emphasizes the company's potential for value return to investors, highlighting its underappreciated status in the market [1] Group 2 - The author has extensive experience in investment analysis, focusing on deep-discount value plays and contrarian investment philosophy [1]

Back in November, I selected Exelon (NASDAQ: EXC ) as a top utility for 2025, rating the stock a Strong Buy at $37. It has been one of the best performers in the sector over the past six months, up ~25% Joseph Jones, professor at The University of Southern Mississippi, has over fifteen years of experience studying the market. He focuses on portfolio construction from a dividend growth investor's perspective. The insights expressed in his research are solely his own; they do not represent the views or financ ...

Market Overview - The S&P 500 Index has recovered all losses from the tariff-related market turmoil, achieving a nine-day winning streak for the first time since November 2004 [1] - The index was previously down nearly 20% from its all-time high during the April turmoil but has since rebounded and is currently about 7% away from its peak recorded in February [2] Investment Recommendations - Five S&P 500 stocks are recommended for investment, all having provided over 20% returns year to date: Netflix Inc. (NFLX), Philip Morris International Inc. (PM), Newmont Corp. (NEM), CenterPoint Energy Inc. (CNP), and Exelon Corp. (EXC) [3][4] Company Insights Netflix Inc. (NFLX) - NFLX exceeded earnings estimates while maintaining healthy engagement levels despite trade and tariff challenges, reaffirming its 2025 guidance [8] - The launch of its Ad Suite in the U.S. is expected to drive subscriber and average revenue per user (ARPU) growth, with strong visibility in its business leading to positive earnings estimate revisions [9] - NFLX's expected revenue and earnings growth rates for the current year are 14% and 27.7%, respectively, with a 3.1% improvement in earnings estimates over the last 30 days [11] Philip Morris International Inc. (PM) - PM is experiencing strong pricing power and growth in its smoke-free product portfolio, aiming to become substantially smoke-free by 2030 [12] - The company anticipates a 2% increase in volume growth for the fifth consecutive year, with smoke-free products projected to grow by 12-14% [13] - PM's expected revenue and earnings growth rates for the current year are 8.1% and 13.7%, respectively, with a 4.6% improvement in earnings estimates over the last 30 days [14] Newmont Corp. (NEM) - NEM is progressing with growth projects, including the Tanami expansion and the Ahafo North project, which is expected to commence commercial production in the second half of 2025 [15][16] - The company has an expected revenue growth rate of 0.1% and an earnings growth rate of 16.7% for the current year, with a significant 23.4% improvement in earnings estimates over the last 30 days [17] CenterPoint Energy Inc. (CNP) - CNP is set to benefit from rising electricity demand due to the electrification of transportation and investments in renewable energy [18] - The company is investing in infrastructure upgrades to support the growing electric vehicle market, including off-road electrification initiatives [20] - CNP's expected revenue and earnings growth rates for the current year are 3.4% and 8%, respectively, with a slight 0.1% improvement in earnings estimates over the last 60 days [21] Exelon Corp. (EXC) - EXC is focusing on strengthening its transmission and distribution infrastructure, which will enhance service reliability and operational resilience [22] - The company is expected to see revenue and earnings growth rates of 4.3% and 6.8%, respectively, with a 0.4% improvement in earnings estimates over the last 30 days [23]

Exelon Corporation EXC reported better-than-expected earnings for the first quarter on Thursday.The company posted quarterly earnings of 92 cents per share which beat the analyst consensus estimate of 88 cents per share. The company reported quarterly sales of $6.71 billion which beat the analyst consensus estimate of $6.59 billion.“The first quarter has put us firmly on the path to deliver within our full-year earnings guidance, through our unwavering commitment to safety, reliability and efficient executi ...

Financial Performance - Exelon's net income attributable to common shareholders increased by $250 million to $908 million for the three months ended March 31, 2025, compared to $658 million in the same period of 2024[353]. - Diluted earnings per share rose to $0.90 in 2025 from $0.66 in 2024, reflecting a significant improvement in financial performance[353]. - Adjusted (non-GAAP) operating earnings for the same period increased to $932 million, or $0.92 per diluted share, compared to $685 million, or $0.68 per diluted share in 2024[355]. - ComEd's net income for the three months ended March 31, 2025, increased by $109 million to $302 million, primarily due to higher distribution and transmission rate base and increased return on regulatory assets[378]. - PECO's net income increased by $117 million to $266 million, attributed to increased revenues and a decrease in income tax expense[389]. - Net income for BGE decreased by $4 million to $260 million for the three months ended March 31, 2025, primarily due to increased operating expenses and interest expense[407]. - PHI's net income increased by $26 million to $194 million for the three months ended March 31, 2025, primarily due to favorable impacts from multi-year plans and higher transmission rates[422]. - Net income for Pepco rose by $22 million to $97 million, primarily due to favorable impacts from multi-year plans and higher transmission rates[424]. - DPL's net income increased by $3 million to $69 million, driven by favorable weather conditions and higher DSIC rates[435]. Revenue and Expenses - ComEd recorded a charge of $70 million for probable disallowance of certain capitalized construction costs due to a settlement with FERC[368]. - Operating revenues for BGE increased by $257 million to $1,554 million for the three months ended March 31, 2025, compared to $1,297 million in 2024[407]. - Operating revenues for Pepco increased by $100 million, reaching $859 million for the three months ended March 31, 2025, compared to $759 million in the same period of 2024[424]. - DPL's operating revenues increased by $57 million to $548 million for the three months ended March 31, 2025, compared to $491 million in 2024[435]. - ComEd's total operating expenses decreased by $190 million to $1,591 million, with a significant reduction in purchased power expense by $218 million[378]. - Operating and maintenance expenses for BGE increased by $41 million, driven by labor and regulatory required programs[416]. - Effective income tax rates for ComEd were 17.7% for Q1 2025, compared to 9.0% in Q1 2024[388]. - Effective income tax rates for BGE were 21.5% in 2025 compared to 8.3% in 2024[419]. - Effective income tax rates for Pepco were 20.5% for the three months ended March 31, 2025, compared to 15.7% in 2024[433]. Customer Metrics - As of March 31, 2025, the number of electric customers for PECO was 1,709,438, a slight decrease from 1,710,839 in 2024[393]. - The number of residential natural gas customers rose to 509,773 in 2025 from 508,429 in 2024, while small commercial and industrial customers decreased slightly to 44,869 from 45,038[395]. - The number of electric customers for BGE increased to 1,349,688 in 2025 from 1,341,840 in 2024[409]. - The number of electric customers in Maryland increased to 607,390, up from 602,098 in the previous year, with residential customers growing to 557,672[426]. - The total number of electric customers increased to 574,762 as of March 31, 2025, from 572,118 in 2024[456]. Regulatory and Legislative Developments - Exelon filed several distribution base rate cases in 2025, with requested revenue increases totaling $1.487 billion across various jurisdictions[361]. - The approved revenue requirement for ComEd's base rate case was $1.045 billion, effective January 1, 2024, with an approved return on equity of 8.905%[361]. - The Utility Registrants are evaluating opportunities under the $1.2 trillion Infrastructure Investment and Jobs Act, which includes funding for power and grid reliability[373]. - The IRS issued guidance that could result in a reduction of regulatory liabilities for the Registrants, potentially impacting deferred income taxes by approximately $1.2 billion to $1.7 billion[371]. - Exelon anticipates ongoing regulatory proceedings will impact future financial statements, emphasizing the importance of these developments for strategic planning[358]. Capital Expenditures and Financing - Capital expenditures for Exelon totaled $(179) million, with ComEd at $4 million, PECO at $(63) million, BGE at $(82) million, and other Registrants showing varying amounts for the three months ended March 31, 2025[469]. - Projected capital expenditures for Exelon in 2025 are estimated at $8.9 billion, with ComEd at $3.2 billion and PECO at $1.875 billion[483]. - The Registrants have access to credit facilities with aggregate bank commitments of $4.0 billion to support their financing needs[463]. - Changes in short-term borrowings for Exelon resulted in a net decrease of $(458) million, while long-term debt increased by $701 million during the same period[470]. - Exelon declared a quarterly dividend of $0.40 per share for both the first and second quarters of 2025[473]. - The Registrants issued approximately 4.0 million shares of Common stock at an average gross price of $43.42 per share, generating net proceeds of $173 million for general corporate purposes[479]. Pension and Hedging - Exelon's estimated annual qualified pension contributions will be $275 million in 2025[485]. - Exelon aims to achieve 100% funded status on an ABO basis for its pension plans over time[485]. - The Registrants utilize hedging programs to mitigate exposure to energy and natural gas price volatility[500]. - The total mark-to-market net liabilities associated with ComEd's floating-to-fixed energy swap contracts amounted to $151 million[507]. - Exelon and its subsidiaries may face increased pension contribution requirements if interest rates decline significantly[487]. Cash Flow and Liquidity - Cash flows from operating activities for the Registrants totaled $208 million for the three months ended March 31, 2025[466]. - Operating cash flow changes for the Registrants were consistent with operational results, with significant impacts noted for the three months ended March 31, 2025, and 2024[467]. - The Registrants believe their cash flows from operating activities and access to credit markets provide sufficient liquidity to support future cash requirements[477]. - Incremental collateral requirements for ComEd would be $13 million if it lost its investment grade credit rating, with available credit facility capacity of $638 million[481]. Ratings and Credit - S&P raised Exelon and PECO's long-term issuer credit rating from 'BBB+' to 'A-' and Exelon's senior unsecured debt rating from 'BBB' to 'BBB+'[493]. - The Registrants' outstanding debt is primarily fixed-rate, significantly reducing interest rate risk[505].

Exelon Corporation’s (EXC) first-quarter 2025 earnings of 92 cents per share surpassed the Zacks Consensus Estimate of 85 cents by 8.3%. (See the Zacks Earnings Calendar to stay ahead of market-making news.)The bottom line also increased 35.3% from the year-ago level of 68 cents. Higher distribution and transmission-rate increase at Commonwealth Edison Company and Pepco Holdings LLC boosted year-over-year earnings.On a GAAP basis, earnings were 90 cents per share, which increased 36.4% from the year-ago qua ...

Exelon (EXC) reported $6.71 billion in revenue for the quarter ended March 2025, representing a year-over-year increase of 11.1%. EPS of $0.92 for the same period compares to $0.69 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $6.45 billion, representing a surprise of +4.05%. The company delivered an EPS surprise of +8.24%, with the consensus EPS estimate being $0.85.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they ...

Financial Data and Key Metrics Changes - Exelon reported operating earnings of $0.92 per share for Q1 2025, up from $0.68 per share in Q1 2024, reflecting a growth of $0.24 per share [17][18] - The earnings increase was primarily driven by $0.14 from new distribution and transmission rates, $0.03 from favorable weather, and $0.02 from tax repairs timing, partially offset by $0.03 from higher interest expenses [17][18] - The company reaffirmed its annualized earnings growth rate of 5% to 7% through 2028, with a projected full-year operating earnings range of $2.64 to $2.74 per share [20][32] Business Line Data and Key Metrics Changes - ComEd and Pepco Holdings are projected to achieve top decile auto frequency and duration performance, while VGE and PECO are in the top quartile [8] - The company has a 17 gigawatt pipeline of opportunity, with an additional 16 gigawatts of high-density load under advanced studies [13][14] Market Data and Key Metrics Changes - The Maryland legislature passed several energy bills aimed at enhancing energy security, including provisions for battery storage and competitive procurement processes [9][40] - PJM has made progress in addressing capacity market issues, with FERC approving solutions that include a temporary price collar [11][12] Company Strategy and Development Direction - Exelon plans to invest $38 billion over the next four years, aiming for a 7.4% rate base growth financed through a balanced mix of debt and equity [15][32] - The company is focused on enhancing customer service and reliability while managing affordability challenges amid economic uncertainties [28][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting objectives despite potential legislative impacts on reconciliations in Maryland [36][42] - The company is actively engaging in discussions to address resource adequacy and affordability, emphasizing a portfolio approach to meet future energy needs [87][89] Other Important Information - Exelon has completed nearly 50% of its planned long-term debt financing for 2025, raising $650 million for Pepco Holdings utilities [24][25] - The company is advocating for legislative changes to lower energy costs for customers, particularly regarding the corporate alternative minimum tax [26][30] Q&A Session Summary Question: Impact of new Maryland legislation on reconciliations - Management expects the reconciliation to proceed without hindrance and is confident in meeting future budget objectives despite legislative changes [36][42] Question: FERC two zero six settlement discussions - Management is open to discussions and aims for a quick resolution to support customer needs [44] Question: Involvement in Pennsylvania legislation for regulated generation - Management supports any measures that enhance resource adequacy and affordability for customers [48] Question: Timing for data center load ramp-up - Management anticipates that 10% of the load will be operational by 2028, with a third by 2030 and three-fourths by 2034 [71] Question: Addressing affordability challenges - Management is actively working to assist customers with energy efficiency programs and community engagement to mitigate cost impacts [76][79] Question: Timeline for lessons learned docket in Maryland - Management expects a decision on the lessons learned process by the end of Q2 2025, emphasizing the importance of multi-year plans [82][84]

Financial Data and Key Metrics Changes - The company reported operating earnings of $0.92 per share for Q1 2025, up from $0.68 per share in Q1 2024, reflecting a growth of $0.24 per share [18][19] - Earnings growth was primarily driven by $0.14 from new distribution and transmission rates, $0.03 from favorable weather, and $0.02 from tax repairs timing, partially offset by $0.03 from higher interest expenses [18][19] - The company reaffirmed its annualized earnings growth rate of 5% to 7% through 2028, with a full-year operating earnings guidance range of $2.64 to $2.74 per share [20][34] Business Line Data and Key Metrics Changes - ComEd and Pepco Holdings are projected to achieve top decile auto frequency and duration performance, while VGE and PECO are in the top quartile [9] - The company has a relatively lower level of base rate case activity this year, with two open rate cases at Atlantic City Electric and Delmarva Power [9][20] Market Data and Key Metrics Changes - The company has a 17 gigawatt pipeline of opportunity, with an additional 16 gigawatts of high-density load under advanced studies, indicating significant incremental commitments from customers [13][14] - The company is actively engaging in legislative and regulatory reforms to ensure energy policy aligns with industry trends and economic goals [10][11] Company Strategy and Development Direction - The company plans to invest $38 billion over the next four years, aiming for a 7.4% rate base growth financed with a balanced mix of debt and equity [16][34] - The focus remains on enhancing service to new customers while ensuring existing customers benefit from new load [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting objectives despite potential challenges from new legislation in Maryland regarding reconciliations [38][44] - The company is well-positioned to manage tariff-related impacts, with approximately 90% of supply sourced domestically [30][31] Other Important Information - The company has completed nearly 50% of its planned long-term debt financing transactions, raising $650 million for Pepco Holdings utilities [25] - The company is advocating for language that incorporates repairs for calculating the corporate alternative minimum tax, which could positively impact consolidated metrics [27] Q&A Session Summary Question: Impact of new Maryland legislation on reconciliations - Management expects the reconciliation to proceed without issues and is confident in meeting future budget objectives despite legislative changes [38][39][44] Question: FERC two zero six settlement discussions - Management is open to discussions and aims for equitable solutions for all customers, emphasizing ongoing collaboration with stakeholders [46][47] Question: Involvement in Pennsylvania legislation for regulated generation - The company supports any initiatives that enhance resource adequacy and affordability for customers, actively participating in legislative discussions [51][52] Question: Timing for data center load ramp-up - Management anticipates that 10% of the load will be operational by 2028, with a phased approach for the remaining capacity [77] Question: Addressing affordability challenges - The company is proactively helping customers manage costs through energy efficiency programs and community engagement, recognizing the economic pressures faced by customers [82][84]