Of the 16 S&P 500 utilities that reported their Q3 earnings this week, just six missed their top and/or bottom line estimates from Wall Street.
Notably, Vistra (VST), Constellation Energy (CEG) and AES (AES) missed estimates, with Vistra falling short of both revenue and EPS expectations.
Evergy (EVRG) and Alliant Energy (LNT) were the other two stocks that reported double misses this week.
Constellation Energy (CEG) and AES (AES) both fell short of Wall Street estimates for EPS, while Duke Energy (DUK) had a top line miss.
So far this quarter, eight out of 31 sector constituents have missed earnings targets and nine have fallen short on revenues, while four have had both top and bottom line misses.
The Utilities Select Sector SPDR Fund (XLU) has climbed nearly 17% YTD.
Key quarterly update from the sector this week included:
Vistra’s (VST) highlights included a landmark 20-year power purchase agreement at Comanche Peak, plans to develop two gas-fired units in West Texas, and the closing of a 2.6-gigawatt natural gas asset acquisition from Lotus Infrastructure Partners. The company also narrowed its guidance for the year. Earnings for the quarter were driven by higher realized prices and capacity revenue, which “more than offset the impacts of extended outages at Martin Lake Unit 1 and our battery facilities at Moss Landing.”
Consolidated Edison (ED) posted a double beat for Q3, driven by a higher electric and gas rate base and increased incomes from asset management arrangements and allowance for funds used during construction. CEO Tim Cawley also highlighted a “Joint Settlement Agreement on a three-year investment plan that, if approved, will fund critical infrastructure investments while keeping affordability and reliability front and center. At the same time, the settlement advances our long-term operational and financial objectives.”
Exelon (EXC) too reported higher-than-expected top and bottom lines, with earnings benefiting from “slightly warmer weather and a mild storm season, along with timing-related drivers,” according to CEO Calvin Butler. The executive indicated continued progress on rate cases for Delmarva Power, Atlantic City Electric, and a new filing at Pepco, Maryland, supporting grid modernization and reliability investments.