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Investing.com -- Shares of Constellation Energy Group, Inc. (NASDAQ:CEG) climbed 9% on optimism over a potential long-term nuclear power agreement. The company’s first-quarter earnings per share (EPS) of $2.14 fell slightly short of the analyst estimate of $2.16. However, revenue for the quarter significantly exceeded expectations at $6.79 billion, compared to the consensus estimate of $5.24 billion. This performance represents a substantial increase from the $1.82 per share reported in the same quarter of the previous year.
Despite mixed results, investors appeared to focus on the company’s reaffirmed full-year 2025 EPS guidance range of $8.90 - $9.60, which aligns closely with the consensus of $9.40. The rise in stock price reflects market sentiment that the company is on track to complete its Calpine acquisition by year-end and the recent selection of Crane Clean Energy Center for fast-track interconnection in the PJM market.
Constellation Energy’s operational achievements were highlighted by a 94.1% capacity factor for its nuclear plants and a 99.2% dispatch match rate for its natural gas operations. The company’s president and CEO, Joe Dominguez, emphasized the importance of Constellation’s role in powering American families and businesses, particularly in the context of national security and the economy.
Analysts have commented on the company’s prospects. Jefferies analyst Paul Zimbardo, who holds a price target of $223, noted the management’s "intriguing and positive statement" regarding the nearing of a long-term nuclear power deal. He also pointed out the continuation of a trend with "no additional share repurchases" in the first quarter. Bloomberg Intelligence’s Nikki Hsu suggested that the company’s "expectation that it will soon announce new long-term power agreements with customers may help alleviate investor concerns about merchant generators’ ability to secure contracts amid rising regulatory uncertainties in key markets."
Investors will be watching closely for further developments on the potential nuclear power deal and the impact of the Calpine acquisition, which is poised to create the nation’s leading competitive retail electric supplier.
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