Constellation Energy (CEG) Q1 Earnings Beat Estimates, Sales Lag

Zacks Equity Research

9 May 2024 at 10:10 am·3-min read

Constellation Energy Corporation Price, Consensus and EPS Surprise

Constellation Energy Corporation CEG reported first-quarter 2024 earnings of $1.82 per share, which surpassed the Zacks Consensus Estimate of $1.64 per share by 11%. In the year-ago quarter, the company recorded earnings of 78 cents per share.

Total Revenues

Constellation Energy’s revenues totaled $6.2 billion, which missed the Zacks Consensus Estimate of $8.4 billion by 26.7%. The top line also declined 18.4% from the year-ago quarter’s figure of $7.6 billion.

Constellation Energy Corporation Price, Consensus and EPS Surprise

Constellation Energy Corporation price-consensus-eps-surprise-chart | Constellation Energy Corporation Quote

Highlights of the Release

Total operating expenses for the reported quarter were $5.35 billion, down 29.2% from $7.56 billion in the year-ago period.

Operating income totaled $813 million compared with the year-ago quarter’s figure of $31 million.

Net interest expenses increased 18.7% to $127 million from $107 million in the year-ago period.

In the reported quarter, CEG repurchased nearly three million shares and deployed approximately $500 million, bringing its cumulative repurchases in excess of $1.5 billion since the program's commencement. In addition, its board of directors authorized an additional $1 billion authority to repurchase shares under its previously announced program.

Financial Position

As of Mar 31, 2024, Constellation Energy had cash and cash equivalents of $562 million compared with $368 million as of Dec 31, 2023.

As of Mar 31, 2024, the company had a long-term debt of $8.4 billion compared with $7.5 billion as of Dec 31, 2023.

Cash used in operating activities in the first three months of 2024 amounted to $723 million compared with $934 million in the year-ago period.

Total capital expenditure for the first quarter was $738 million compared with $660 million in the year-ago period.

Guidance

Constellation Energy announced its 2024 adjusted earnings per share (EPS) guidance in the range of $7.23-$8.03. The Zacks Consensus Estimate for the same is pegged at $7.43, which is lower than the midpoint of the company’s guided range.

Zacks Rank

Currently, Constellation Energy has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Releases

NextEra Energy Partners, LP NEP recorded first-quarter 2024 operating earnings of 75 cents per unit, which surpassed the Zacks Consensus Estimate of 12 cents by 525%.

The Zacks Consensus Estimate for 2024 EPS is pegged at $1.54, which implies a year-over-year increase of 352.9%. The Zacks Consensus Estimate for sales stands at $1.37 billion.

CNX Resources Corporation CNX reported first-quarter 2024 operating earnings of 45 cents per share, which beat the Zacks Consensus Estimate of 36 cents by 25%.

The consensus estimate for 2024 EPS is pegged at $1.39, which suggests a year-over-year decrease of 26.8%. It delivered an average earnings surprise of 58.1% in the last four quarters.

Arch Resources Inc. ARCH reported a first-quarter 2024 operating EPS of $2.98, which surpassed the Zacks Consensus Estimate of $2.79 by 6.8%.

The consensus estimate for 2024 earnings is pegged at $12.83, which indicates a year-over-year decrease of 47%. The consensus mark for 2024 sales is pegged at $2.56 billion.

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