Constellation Energy In Focus After Q3 Beat: Despite Stock Slide, Retail Remains Confident

Shares of Constellation Energy Corp ($CEG) fell nearly 13% in Monday’s pre-market session as of 7:36 a.m. ET despite the firm’s third-quarter results beating Wall Street estimates.

Operating revenue came in at $6.55 billion compared to an estimate of $5.71 billion. Earnings per share (EPS) came in at $2.74 versus an estimate of $2.63.

CFO Dan Eggers said the company’s generation fleet performed exceptionally well during the quarter, and the firm is on track to beat its average refueling outage duration by more than two days which is more than 50% below the industry average.

“Our commercial team continued to create exceptional value through optimizing both our generation and load businesses,” he said.

The company raised its adjusted (non-GAAP) operating earnings guidance range for the full year to $8.00 – $8.40 per share, up from $7.60 – $8.40 per share.

“This guidance is built upon a strong financial foundation in the third quarter, including adjusted (non-GAAP) operating earnings of $2.74 per share, up from $2.13 per share in the same quarter last year,” Eggers said.

Notably, during the third quarter, Constellation executed a 20-year power purchase agreement (PPA) with Microsoft Corp ($MSFT) that will support the restart of Three Mile Island Unit 1, which was retired in 2019 for economic reasons.

Under the agreement, the software giant will purchase the output generated from the renewed plant as part of its goal to help power its data centers in PJM with clean energy, the company said.

Following the release of the earnings report, one Stocktwits user indicated that the slide in stock price is likely to be an over-reaction.

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