NEW YORK (TheStreet) -- Shares of Exelon (EXC - Get Report) are up by 0.29% to $29.29 at the start of trading on Tuesday morning, after the utility company asked the Washington D.C. mayor's office to reconsider its $6.8 billion merger proposal with Pepco (POM) .
The companies contend that the District of Columbia Public Service Commission did not explain the proper conditions needed to gain approval for the merger, while also noting that any deficiencies "can be easily cured," according to Bloomberg.
The merger between D.C.-based Pepco and Chicago-based Exelon is part of an industry wide consolidation effort that has arisen amid falling energy prices and rising costs.
However, the DC PSC unanimously voted August 25 not to approve the merger because the newly combined company would focus less on customers in the D.C. area.
Exelon had already received regulatory approval from Maryland, Delaware, New Jersey and Virginia, with the District being the last jurisdiction needed for the deal to go forward.
Separately, 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 multiple strengths, 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:
- EXC's revenue growth has slightly outpaced the industry average of 0.8%. Since the same quarter one year prior, revenues slightly increased by 8.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Electric Utilities industry average. The net income increased by 22.2% when compared to the same quarter one year prior, going from $522.00 million to $638.00 million.
- Net operating cash flow has significantly increased by 56.30% to $2,479.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 22.16%.
- EXELON CORP has improved earnings per share by 23.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EXELON CORP reported lower earnings of $1.87 versus $2.00 in the prior year. This year, the market expects an improvement in earnings ($2.47 versus $1.87).
- You can view the full analysis from the report here: EXC