US Election 2024: Here’s What Constellation Energy’s Management Said About The Election’s Impact On The Firm

Constellation Energy Corp ($CEG) recently reported its third-quarter results that saw its revenue and earnings top Wall Street estimates. In its earnings call, CEO Joseph Dominguez explained how the U.S. presidential election could impact the firm.

“We're proud that nuclear energy has strong and bipartisan support from federal and state policymakers and from the American people. And in fact, the majority of Americans support nuclear,” Dominguez explained, according to the earnings call transcript.

He went on to highlight that Congress has passed several pieces of pro-nuclear legislation in recent years, including the ADVANCE Act, which passed Congress with strong bipartisan support.

The management’s take comes at a time when Constellation has inked an attractive deal with tech giant Microsoft Corp ($MSFT). During the third quarter, the company executed a 20-year power purchase agreement (PPA) with Microsoft 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.

Dominguez said that the governors in the states where the firm operates clean energy centers certainly understand the national security imperative and the value of economic development in their states.

“They want us to use the clean energy in their states, and we want that too, but we will follow the customers to all utilities and regions that are working with us to advance economic development and meet the vital national security needs of the nation,” the CEO said.

Meanwhile, during the third quarter, Constellation’s 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.

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.

On Stocktwits, a few retail investors believe the stock presents an attractive buying opportunity if it corrects a bit.

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