Constellation Energy Q3 adjusted EPS beats estimates on Calpine acquisition impact

Overview

• U.S. power producer's Q3 adjusted EPS rose, beating analyst expectations

• Adjusted net income for Q3 also beat analyst estimates

• Company raised full-year adjusted EPS guidance and agreed to acquire Rhode Island State Energy Center

Outlook

• Constellation raises midpoint and narrows 2026 adj operating EPS guidance to $12.50-$12.80

• Company expects sustained earnings growth supported by capital allocation and recent acquisitions

• Constellation sees new long-term agreements adding over 1,000 MW of emissions-free generation to grid

Result Drivers

• MARKET AND PORTFOLIO CONDITIONS - Co said Q3 adjusted operating earnings primarily reflected favorable market and portfolio conditions and addition of Calpine, partially offset by unfavorable interest and nuclear PTC portfolio

• NUCLEAR FLEET PERFORMANCE - Nuclear plants achieved a 97.2% capacity factor in Q3, up from 96.8% a year ago, with output rising slightly year over year

• CALPINE ACQUISITION IMPACT - Addition of Calpine's assets contributed to expanded fleet and operational metrics in Q3

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy"

• Wall Street's median 12-month price target for Constellation Energy Corp is $342.62, about 37.1% above its November 6 closing price of $249.95

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 21 three months ago

Reuters Recommended Reads

• Nov 6 - Vistra Q3 revenue and adjusted EBITDA beat estimates on higher energy, capacity prices

• Nov 6 - Power producer Vistra says it has not seen demand shift from Texas to PJM after US midterms

• Nov 6 - Ameren sees data-center deals pushing investment beyond $38 billion plan

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)