Constellation Energy shares drop 7% despite strong Q3 results

BALTIMORE - Constellation Energy Corporation (NASDAQ:CEG) reported third-quarter earnings that surpassed analyst expectations, but its shares tumbled 7%.

The energy giant posted adjusted earnings per share of $2.74 for the third quarter, beating the analyst consensus of $2.63. Revenue for the quarter came in at $6.55 billion, significantly above the estimated $5.71 billion and representing a substantial increase from the same period last year.

The company narrowed and raised the midpoint of its full-year 2024 adjusted earnings guidance to a range of $8.00 to $8.40 per share, compared to the analyst consensus of $8.05. This guidance represents an improvement from the previous range of $7.60 to $8.40.

CEO Joe Dominguez highlighted the company's recent 20-year power purchase agreement with Microsoft (NASDAQ:MSFT ), stating, "Our customers are looking for clean, emissions-free energy that they can rely on in every hour of every day, and nothing exemplifies that imperative more than our 20-year agreement with Microsoft to restart the Crane Clean Energy Center."

The company's nuclear fleet, including owned output from Salem and South Texas Project Generating Stations, produced 45,510 gigawatt-hours in Q3, up from 44,125 gigawatt-hours in the same quarter last year. The nuclear plants achieved a 95.0% capacity factor, excluding Salem and STP, compared to 97.2% in Q3 2023.

Constellation also announced plans to restart Three Mile Island Unit 1, renamed as the Crane Clean Energy Center, which was retired in 2019. The project is expected to require approximately $1.6 billion in capital expenditures, with an estimated in-service date of 2028.

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Source: Investing.com