Constellation Energy Corporation CEG is going to report its second-quarter 2024 results on Aug 6.

The Zacks Consensus Estimate for CEG’s second-quarter revenues is pegged at $5.30 billion, indicating a 2.67% decline from the year-ago reported figure.

The consensus estimate for earnings is pegged at $1.43 per share. The Zacks Consensus Estimate for CEG’s second-quarter earnings has declined 23.9% in the past 60 days. The estimate suggests a year-over-year decline of 44.1%.

 

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Solid Earnings Surprise History

Constellation Energy’s earnings beat the Zacks Consensus Estimate in three out of the trailing four quarters, while lagging in one quarter, the average surprise being 49.42%.

 

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What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Constellation Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: CEG has an Earnings ESP of 0.00%.

Zacks Rank: Constellation Energy currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Have Shaped CEG’s Q2 Earnings

Constellation Energy’s nuclear fleet is well maintained and operated compared with its peers. The annual nuclear capacity factor has been more than 94% in the past five years compared with the national average of nearly 91%. The high-capacity factor and availability of the power plant are expected to continue in 2024 and will provide ample clean electricity to the company to serve its customers. The high-capacity factor of nuclear units is likely to have boosted second-quarter earnings.

The company efficiently provides clean electricity to nearly 21% of the Competitive Commercial & Industrial (C&I) customers in the United States. Rising demand for clean electricity from the C&I group is likely to have boosted the performance of the company in the second quarter.

Constellation Energy utilizes nuclear energy to produce clean electricity. The nuclear production tax credit (PTC) in the IRA provides a stable foundation for consistent and growing earnings for the company. PTC provides revenue certainty for the company while maintaining its ability to capture power price upside from the market, which is likely to have contributed to second-quarter earnings. Other utilities like Entergy Corporation ETR and Duke Energy Corporation DUK also have nuclear power generation assets and enjoy similar benefits.

Constellation Energy expects to generate an additional net income in 2024-2025 through organic means like wind repowering, nuclear uprates, nuclear license renewals and clean hydrogen production. These factors are likely to have contributed to second-quarter earnings.

Constellation Energy’s second-quarter earnings are likely to have benefited from ongoing share repurchases. It repurchased shares worth $1 billion in 2023 and has already started to buy back more shares in 2024.