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Monday, November 4, 2024

Constellation Surprises With 30% EPS Growth. Regulators Turn Cool On Amazon Nuke Deal

 S&P 500 nuclear energy giant Constellation Energy (CEG) reported better-than-expected third-quarter earnings and revenue while also narrowing its 2024 profit expectations early Monday even as energy regulators rejected a nuclear deal between Amazon.com (AMZN) and Talen Energy (TLNE) late Friday.

Constellation Energy saw Q3 earnings grow 28% to $2.74 per share while sales totaled $6.55 billion, up 7% compared to a year ago. Prior to Monday, analysts predicted third-quarter EPS earnings of $2.66 and revenue coming in at $5.71 billion.

The company on Monday also raised the midpoint and narrowed full-year 2024 earnings guidance to between $8.00 – $8.40 per share. In early August, Constellation Energy increased its full-year profit guidance to between $7.60-$8.40 per share for 2024. Constellation Energy's previous view was $7.23-$8.03 per share.

The company said Monday that its Q3 earnings increase was primarily due to its nuclear energy offerings and "favorable net market and portfolio conditions." The company's nuclear fleet produced 45,510 gigawatt-hours in Q3, up 3% compared Q3 2023.

"The importance of AI and the data economy to America's economic competitiveness and national security can't be overstated, and Constellation will do our part to meet the moment," Constellation Energy Chief Executive Joe Dominguez said in the earnings release Monday.

Dominguez added on the conference call with analysts Monday that the "intensity of our negotiations with hyperscalers and others keeps going up and up."

"Our entire team is focused on executing transactions and supporting data centers development," the Constellation Energy head said.

Constellation management also said on the earnings call Monday that base earnings will grow by at least 13% through 2030. In May, Constellation said it would grow profit by at least 10% through the end of the decade.

https://www.investors.com/news/nuclear-energy-sp500-constellation-energy-earnings/

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