By Dean Seal
Shares of Constellation Energy hit an all-time high after the company raised its earnings outlook and logged a strong third quarter.
The stock rose 7.3%, to a high of $125.62, in midday trading. Shares have risen 45% so far this year.
The power-generation and competitive energy business now expects adjusted earnings before interest, taxes, depreciation and amortization to be $3.8 billion to $4 billion for 2023. That is up from previous guidance for $3.3 billion to $3.7 billion.
Chief Financial Officer Dan Eggers said the company’s gross margin outlook is now $850 million higher than where it started the year. Constellation’s outlook for 2024 has also increased, Eggers said.
“Our generation fleet performed at peak levels during a summer of record heat, while our commercial business continued to win new business and realize higher margins,” he said.
The Baltimore-based company posted a profit of $731 million in the third quarter, compared with a $188 million loss in the same quarter a year ago.
Earnings were $2.26 a share, compared with a loss of 57 cents a share last year. Analysts surveyed by FactSet had been expecting $1.48 a share.
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