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CHICAGO – Exelon Corporation (NASDAQ:) reported successful fourth quarter 2023 with adjusted earnings per share (EPS) of $0.60, beating analyst consensus estimates of $0.58 by $0.02 Did. The company's results reflect a year of strong operating results and financial discipline.
Exelon has introduced an EPS guidance range of $2.40 to $2.50 for the full year 2024, roughly in line with the consensus estimate of $2.41. This forward-looking guidance demonstrates the company's confidence in its strategic investments and operational efficiency.
Exelon's fourth quarter GAAP net income from continuing operations increased to $0.62 per share from $0.43 per share in the prior-year period. Adjusted (non-GAAP) operating income for the quarter also increased year over year (year-over-year) from $0.43 per share to $0.60 per share. This growth was primarily driven by higher utility revenues due to the positive impact of multi-year plans such as the recognition of the 2023 Settlement in BGE, and higher distribution revenues due to an increase in allowable return on distribution (ROE) due to regulations in 2020. This is due to an increase. Higher Treasury Interest Rates at ComEd.
“Exelon had another strong year financially and operationally in 2023,” said Calvin Butler, President and CEO. We achieved record operating results for the utility and advocated for a more affordable and equitable energy transformation for our customers.”
Jeanne Jones, Chief Financial Officer, said: “Despite the historically mild weather that impacted our non-separated jurisdictions, we achieved our second consecutive year of strong financial results for the full year 2023. “We had GAAP earnings of $2.34 and $2.38 per share,” he added. Adjusted per share results are at the high end of the company's reduced guidance range. ”
The company's stock reacted positively to the news, reflecting investor satisfaction with the solid performance and guidance provided for next year. This positive market reaction supports confidence in Exelon's strategic direction and ability to create value for shareholders.
Exelon's commitment to invest $35 billion in capital expenditures over the next four years will effectively meet customer needs, with projected interest base growth of 7.5% from 2023 to 2027 and operating EPS compound annual growth rate of 5 expected to contribute ~7%. The investment is designed to support the energy transformation of Exelon's jurisdictions affordably and efficiently.
The company's utilities, including ComEd and PHI, ended the year with record outage frequency and duration, demonstrating Exelon's focus on operational excellence and customer satisfaction.
Exelon's financial and operational success in the fourth quarter, combined with a positive outlook for 2024, positions the company well for continued growth and leadership in the utility sector.
Investment Pro Insights
As Exelon Corporation (NASDAQ:EXC) comes off a strong fourth quarter and looks ahead to 2024, InvestingPro's data and analysis provides further context on the company's financial health and future prospects. According to InvestingPro metrics, Exelon's market capitalization is $34.57 billion, reflecting the company's large presence in the utilities sector. The company's price-to-earnings ratio (P/E), an important indicator of market expectations for the company's growth, is 16.26 times, which is in line with the industry standard. Notably, the trailing-12-month adjusted P/E ratio as of Q3 2023 is slightly lower at 15.96, suggesting a slightly more favorable valuation.
Exelon's commitment to shareholder returns is evident in these notable tips from InvestingPro. The company has maintained its dividend for his 53 consecutive years. This consistent investor reward is complemented by a current dividend yield of 4.15%, which is particularly attractive in today's market environment. Moreover, the company's revenue growth rate over the past 12 months as of Q3 2023 was his 11.63%, indicating solid financial performance.
For those considering investing in Exelon, it's worth paying attention to additional tips from InvestingPro. Despite the company's solid dividend history, it operates with a high amount of debt, with short-term debt exceeding current assets. This may be something to consider for risk-averse investors. However, analysts expect the company to remain profitable this year, which could provide some comfort.
With these insights in mind, readers interested in deeper analysis can explore more of InvestingPro's tips for making informed decisions. InvestingPro for Exelon lists five more tips and can be accessed at https://www.investing.com/pro/EXC.Use coupon code pro news 24 Get an additional 10% discount on annual or biennial Pro and Pro+ subscriptions and get a comprehensive understanding of Exelon's investment potential.
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