Constellation to Post Q4 Earnings: What's in Store for the Stock?

Constellation Energy Corporation CEG is expected to report fourth-quarter 2025 earnings soon.
 
The Zacks Consensus Estimate for revenues is pinned at $5.49 billion, indicating an increase of 1.92% from the year-ago reported figure. The consensus mark for earnings is pegged at $2.18 per share, indicating a year-over-year decline of 10.66%. The bottom-line estimate has gone down 1.8% over the past 60 days.

CEG’s Earnings Surprise History

Constellation Energy’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missed one and met in the remaining one, delivering an average surprise of 3.23%.

What Our Quantitative Model Predicts

Our proven model conclusively predicts 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 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 +3.13%. 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.

Other Stocks Worth a Look

Some other stocks from the same industry that have the combination of factors indicating an earnings beat are Cameco Corporation CCJ, Excelerate Energy EE and Expand Energy Corporation EXE. CCJ has a Zacks Rank #2, while EE and EXE carry a Zacks Rank #3 at present. CCJ, EE and EXE currently have an Earnings ESP of +2.35%, +1.03% and +2.62%, respectively.

Factors That Might Have Impacted CEG’s Q4 Performance

Constellation Energy’s fourth-quarter earnings are expected to have benefited from increasing demand from the data centers, which it is anticipated to have met using the highly efficient nuclear fleet and diverse generation assets.

The company continues to enjoy the benefits of securing long-term power purchase agreements from the big technology firms, which ensures a steady flow of revenues. This is expected to have boosted the bottom line in the fourth quarter.

Constellation Energy has been expanding its renewable portfolio beyond nuclear power, diversifying the energy mix to support long-term earnings growth. By balancing investments in renewables with its strong nuclear foundation, the company is well positioned in an increasingly sustainability-focused energy market, with these initiatives expected to support fourth-quarter results.

The company’s ongoing share repurchase program is expected to have enhanced shareholder value and might have supported fourth-quarter earnings by reducing shares outstanding at period end.

CEG Stock’s Price Performance

In the past three months, the stock has lost 17.5% against the industry’s growth of 9.7%.

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 24.01X compared with the industry average of 23.5X.

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 solid returns and enhanced stakeholder value while helping customers meet emissions targets and manage energy costs efficiently.

Supported by the large carbon-free generation fleet and integrated energy supply and risk management services, Constellation Energy is well positioned to meet rising demand in its service regions, reinforce revenue growth and contribute to a more sustainable energy future.

Constellation Energy’s strategic investments and continued renewable expansion are driving earnings performance, a trend likely sustained in the fourth quarter.

Summing Up

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

Given Constellation Energy’s premium valuation, prospective investors should approach the stock cautiously. The company’s highly regulated nuclear operations may face higher operating costs from regulatory changes.

 

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

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