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Constellation Energy Posts Big Miss (CEG, EXC, PGN, DUK)

Constellation Energy Group Inc. (NYSE: CEG) posted an EPS loss of -$2.91 on revenue of $2.95 billion. Stripping out costs related to the company’s merger with Exelon Corp. (NYSE: EXC), adjusted EPS came in at $0.05. The consensus estimate called for EPS of $0.64 on revenue of $5.89 billion.

The company’s $8 billion merger with Exelon remains on track to be completed in the first quarter, barring any regulatory intervention. The merger with Exelon still needs approval from the Federal Energy Regulatory Commission (FERC) which is also reviewing the proposed acquisition of Progress Energy Inc. (NYSE: PGN) by Duke Energy Corp. (NYSE: DUK).

Constellation, like other merchant power company, has been hit hard by the decreased demand for electricity and by the collapsing price for power. The proposed mergers could help with pricing power, but the FERC has said that it will not relax its existing merger guidelines as two other federal agencies have.

Constellation stock has not traded in the pre-market today, but closed yesterday at $36.67, up about 1.19% from the previous day.