Constellation Energy Q4 Earnings Surpass Estimates, Revenues Fall Y/Y

Core Viewpoint - Constellation Energy Corporation (CEG) reported strong fourth-quarter earnings, exceeding estimates, but faced revenue declines compared to the previous year [1][2]. Financial Performance - CEG's fourth-quarter 2024 earnings per share (EPS) were $2.44, surpassing the Zacks Consensus Estimate of$2.19 by 11.4% [1]. - Total revenues for the quarter were $5.38 billion, missing the Zacks Consensus Estimate of$5.51 billion by 2.4%, and decreased 7.1% from $5.8 billion in the same quarter last year [2]. - Full-year 2024 revenues totaled$23.6 billion, down from $24.9 billion in the previous year [2]. - Total operating expenses were$4.48 billion, down 23.6% from $5.86 billion in the year-ago period, leading to an operating income of$972 million compared to an operating loss of $67 million in the prior year [3]. Financial Position - As of December 31, 2024, CEG had cash and cash equivalents of$3.02 billion, a significant increase from $0.368 billion a year earlier [5]. - Long-term debt decreased to$7.384 billion from $7.496 billion as of December 31, 2023 [5]. - Cash used in operating activities in 2024 was$2.46 billion, down from $5.30 billion the previous year [5]. - Total capital expenditures for 2024 were$2.57 billion, slightly up from $2.42 billion a year ago [5]. Strategic Developments - CEG entered into a definitive agreement to acquire Calpine Corporation, which will enhance its position as a leading producer of clean energy and reliable natural gas assets [4]. - The acquisition deal includes 50 million shares of CEG's common stock and$4.5 billion in cash [4]. Guidance - CEG provided full-year 2025 adjusted operating earnings guidance of $8.90-$9.60 per share, with the Zacks Consensus Estimate at $9.30 per share, indicating a positive outlook [6]. Market Position - CEG currently holds a Zacks Rank 2 (Buy), reflecting a favorable market position [7].