NEW YORK (TheStreet) -- Shares of Exelon (EXC) - Get Report were gaining 1.8% to $31.17 Tuesday ahead of the utility company's second quarter financial report which is due before the market opens on Wednesday.
Analysts expect Exelon to report earnings of 54 cents a share and revenue of $5.88 billion for the quarter.
In the first quarter of 2015 Exelon reported earnings of 71 cents a share, above analysts' estimates of 69 cents a share for the quarter. The company revenue of $8.64 billion for the first quarter, beating analysts' estimates of $7.07 billion.
Exelon reported earnings of 51 cents a share for the second quarter of 2014, above analysts' estimates of 50 cents a share. The company saw revenue of $6.19 billion in the year-ago quarter, compared to analysts' estimates of $5.64 billion.
TheStreet Ratings team rates EXELON CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXELON CORP (EXC) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, attractive valuation levels, good cash flow from operations and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 3.4%. Since the same quarter one year prior, revenues rose by 22.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electric Utilities industry. The net income increased by 670.0% when compared to the same quarter one year prior, rising from $90.00 million to $693.00 million.
- Net operating cash flow has significantly increased by 803.03% to $1,490.00 million when compared to the same quarter last year. In addition, EXELON CORP has also vastly surpassed the industry average cash flow growth rate of 16.12%.
- The debt-to-equity ratio is somewhat low, currently at 0.98, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.94 is somewhat weak and could be cause for future problems.
- You can view the full analysis from the report here: EXC Ratings Report