Why Is Exelon (EXC) Up 0.5% Since Last Earnings Report?

A month has gone by since the last earnings report for Exelon (EXC). Shares have added about 0.5% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Exelon due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Exelon's Q3 Earnings and Revenues Beat Estimates, Plans to Invest $34.5BExelon Corporation’s third-quarter 2024 earnings of 71 cents per share surpassed the Zacks Consensus Estimate of 67 cents by 5.9%. Earnings also increased from the year-ago level of 67 cents. Higher distribution earnings, distribution rate base and strong return on regulatory assets boosted earnings.On a GAAP basis, earnings were 70 cents per share on par with the year-ago quarter.Total Revenues of ExelonExelon reported revenues of $6.15 billion, which surpassed the Zacks Consensus Estimate of $6.06 billion by 1.4%. The top line was 2.9% higher than the year-ago figure of $5.98 billion.Highlights of Exelon Q3 ReleaseOn Sept. 20, 2024, Delmarva Power & Light (“DPL”) filed an application with the DEPSC to increase its annual natural gas rates by $36 million, reflecting an ROE of 10.65%. DPL currently expects a decision in the first quarter of 2026.Due to revenue decoupling, Exelon’s distribution earnings were not affected by actual weather or customer usage patterns.Exelon's total operating expenses increased 2.14% year over year to $4.96 billion.Operating income amounted to $1.19 billion, up 6.5% year over year.Interest expenses totaled $496 million, up 13.5% from the year-ago quarter’s level.In the quarter, the company issued new debts worth $750 million, the proceeds from the issue will be utilized to repay existing indebtedness and for general corporate purposes.Financial HighlightsCash and cash equivalents totaled $616 million as of Sept. 30, 2024, compared with $445 million as of Dec. 31, 2023.Long-term debt was $43.7 billion as of Sept. 30, 2024, compared with $39.7 billion as of Dec. 31, 2023.Cash provided by operating activities in the first nine months of 2024 totaled $4.14 billion compared with $3.29 billion in the year-ago period.Guidance for ExelonExelon expects earnings in the range of $2.40-$2.50 per share for 2024. The Zacks Consensus Estimate for the same is pinned at $2.44 per share, lower than the midpoint of the company’s guided range. The company also reaffirms its adjusted (non-GAAP) operating EPS compounded annual growth target of 5-7% through 2027.Exelon will be making $34.5 billion of critical investments in its energy infrastructure in the 2024-2027 period.How Have Estimates Been Moving Since Then?Estimates review followed an upward path over the past two months.VGM ScoresCurrently, Exelon has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookExelon has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerExelon is part of the Zacks Utility - Electric Power industry. Over the past month, Avangrid (AGR), a stock from the same industry, has gained 1.2%. The company reported its results for the quarter ended September 2024 more than a month ago.Avangrid reported revenues of $2.08 billion in the last reported quarter, representing a year-over-year change of +5.5%. EPS of $0.55 for the same period compares with $0.27 a year ago.Avangrid is expected to post earnings of $0.62 per share for the current quarter, representing a year-over-year change of -36.1%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Avangrid. Also, the stock has a VGM Score of D.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. 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