Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (Before Market Open)
Pre-Earnings Price$39.53Last close (Nov 1, 2023)
Post-Earnings Price$39.87Open (Nov 2, 2023)
Price Change
$0.34(+0.86%)
- Exelon is projecting a robust 6% to 8% annualized earnings growth, driven by a significant $31 billion capital plan, including exciting incremental transmission opportunities, while maintaining a strong balance sheet and funding investments with a balanced mix of internal cash flows and financing.
- Exelon's subsidiary ComEd starts from rates roughly 23% below large city national averages, providing headroom for vital investments in infrastructure and clean energy, while maintaining customer affordability and achieving a bill CAGR of 4.5% to 5% over the next five years.
- Exelon has significant future growth opportunities through transmission investments, with major projects like Brand Insurers slated for in-service in 2028, and is actively pursuing additional opportunities in offshore wind, data center load growth, and federal hydrogen hub grants, indicating strong future growth potential.
- Potential unfavorable regulatory outcomes in Illinois: Exelon expressed disappointment with the proposed order from the Administrative Law Judge regarding ComEd's multiyear rate plan. The proposed order does not fairly recognize ComEd's cost of financing, which could negatively impact Exelon's financial performance if the final order is not adjusted in their favor.
- Need for additional equity financing: Exelon plans to issue $425 million of equity by 2025 to finance incremental capital expenditures, regardless of the outcome of the corporate alternative minimum tax clarity from the IRS. This additional equity issuance could dilute existing shareholders' value.
- Rising customer bills and potential affordability concerns: ComEd estimates a compound annual growth rate of 4.5% to 5% in customer bills over the next five years. This significant increase may lead to customer affordability issues and potential regulatory pushback, impacting Exelon's revenue growth.