Constellation Energy to Report Q3 Earnings: How to Play the Stock?

Constellation Energy Corporation CEG is expected to report third-quarter 2025 earnings on Nov. 7, before market open. 

The Zacks Consensus Estimate for revenues is pinned at $6.12 billion, indicating a decline of 6.53% from the year-ago reported figure. The consensus mark for earnings is pegged at $3.04 per share, indicating year-over-year growth of 10.95%. The bottom-line estimate, however, has gone down 1.62% over the past 60 days.

CEG’s Earnings Surprise History

Constellation Energy’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and met in one, delivering an average surprise of 4.13%.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Constellation Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here as you will see below.

Constellation Energy Corporation Price and EPS Surprise

Constellation Energy Corporation price-eps-surprise | Constellation Energy Corporation Quote

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Constellation Energy carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.

Stocks Worth a Look

Some stocks from the same sector that have the combination of factors indicating an earnings beat are Granite Ridge Resources, Inc. GRNT and Delek US Holdings, Inc. DK. GRNT and DK have an Earnings ESP of +3.70% and +98.57%, respectively, and hold a Zacks Rank #3 each at present.

Factors That Might Have Impacted CEG’s Q3 Performance

Constellation Energy’s third-quarter earnings are expected to have benefited from strong commercial performance through portfolio optimization and increasing demand from an expanding customer base. 

CEG’s robust nuclear infrastructure enables it to fulfill the increasing demand from data centers, which is also likely to have had a positive impact on the revenues and earnings of the to-be-reported quarter.

Constellation Energy's renewable energy portfolio is being actively expanded outside nuclear operations. In addition to diversifying its energy mix, this strategic focus fosters long-term earnings growth. By striking a balance between investing in renewable energy and preserving dominant nuclear capabilities, the company sets itself up for success in a changing energy market that is centered on sustainability. The third-quarter results are expected to benefit from these continuing strategic initiatives.

Ongoing repurchase of shares by the company is expected to have increased the value of shareholders and might have a positive impact on earnings due to lower shares outstanding at the end of the period.

CEG Stock’s Price Performance

In the past six months, the stock has returned 45.6% compared with the industry’s growth of 29.6%.

CEG Stock Trading at a Premium

Constellation Energy is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 31.71X compared with the industry average of 23.36X.

Investment Consideration for CEG

Constellation Energy’s investments in customer-focused energy solutions, including carbon-free and renewable energy certifications, are expected to have generated favorable returns and enhanced stakeholder value. Through this approach, Constellation Energy helps customers achieve their emission goals while effectively managing energy costs and consumption.

With its extensive carbon-free generation fleet and comprehensive energy supply and risk management services, the company is well-positioned to capture growing demand, strengthen revenue streams and advance a more sustainable energy future.

Constellation Energy’s strategic investments and ongoing expansion of its renewable portfolio continue to drive the earnings performance, a trend which is likely to have been sustained in the third quarter.

Rounding Up

Considering Constellation Energy’s solid earnings growth expectations for the third quarter, stable price performance and rising demand for clean energy, existing investors may continue to hold on to this stock. 

However, taking into account its premium valuation, new stakeholders interested in this stock should take a cautious approach before adding the stock to their portfolio. Constellation Energy’s operations are highly regulated and could be negatively impacted by legislative and regulatory actions. 

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This article originally published on Zacks Investment Research (zacks.com).

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