Utility services company, Exelon Corporation (EXC), announced that it will invest $5 billion in different cost-effective and clean energy projects to reduce carbon emissions. The investment will be made between 2010 and 2015, which will result in new material and equipment orders, engineering and construction contracts, and professional and technical service agreements.
This investment will help reduce 15.7 million metric tons of greenhouse gas emissions per year by 2020. The company has already achieved 50% of its objective by reducing emissions of 8 million metric tons of greenhouse gases.
Exelon’s major peers, Ameren Corporation (AEE), Dynegy Inc. (DYN) and PPL Corporation (PPL), are yet to come up with a structured attempt to reduce greenhouse gas emissions.
The adjusted earnings of Exelon at the end of third-quarter 2010 were $1.11 per share compared with 96 cents earned in the year-ago comparable period.
During the third quarter earnings call, the company raised the earnings expectation for 2010 to $3.95–$4.10 per share from the prior range of $3.80–$4.10. The narrowing of the guidance at the low-end reflects the strong performance of the company over the first nine months of 2010.
The Zacks Consensus Estimates for fourth quarter 2010, fiscal year 2010 and fiscal year 2011 are 92 cents per share, $4.01 and $4.10, respectively.
Our View
We appreciate Exelon’s endeavors to reduce carbon emissions and produce greener energy. Such investments also help create thousands of jobs in the process, as witnessed in August, 2010, when an investment of $4.6 billion in different projects yielded new jobs.
Exelon currently retains a Zacks #3 Rank (short-term Hold rating). and we presently maintain a Neutral rating on the stock.
Based in Chicago, Illinois, Exelon Corporation, through its subsidiaries, engages in the generation, transmission, distribution and sale of electricity to residential, commercial, industrial and wholesale customers.
AMEREN CORP (AEE): Free Stock Analysis Report
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EXELON CORP (EXC): Free Stock Analysis Report
PPL CORP (PPL): Free Stock Analysis Report
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