How to Play With Constellation Energy Stock After Mixed Q3 Results?

Constellation Energy Corporation CEG reported third-quarter 2025 earnings of $3.04 per share, which lagged the Zacks Consensus Estimate of $3.13 by 2.89%. Its top line totaled $6.57 billion, which beat the Zacks Consensus Estimate of $6.12 billion by 7.3%.CEG stock closed at $335.74 on Nov. 13, showing a decline of 5.16% in intraday trading, which reflects market reaction to its mixed earnings report this season. However, in the past six months, the company’s shares have gained 49.2% compared with the industry’s 38.9% rise. CEG has also outperformed the S&P 500 and the Zacks Oil-Energy sector’s growth of 16.7% and 2.4%, respectively.Price Performance (Six months)Image Source: Zacks Investment ResearchIs it a good time to consider this alternate energy stock for your portfolio? Let us examine the key factors that contributed to the share price gain, review the third-quarter results and assess the stock's investment prospects.Highlights of CEG’s Q3 Earnings ReleaseRevenues totaled $6.57 billion, which beat the Zacks Consensus Estimate of $6.12 billion by 7.3%. The top line also increased 0.3% from the year-ago figure of $6.55 billion.Renewable energy capture for the company’s wind, solar and run-of-river hydro fleet was 96.8% compared with 96% in the third quarter of 2024.Constellation Energy’s owned output from the Salem and South Texas Project Generating Stations produced 46,477 gigawatt-hours (GWhs) in the third quarter of 2025 compared with 45,510 GWhs in the third quarter of 2024.During the quarter, the company entered into a settlement with Maryland Department of the Environment for the continued operation of the Conowingo dam. This will allow the company to operate its Conowingo hydroelectric facility.Net interest expenses decreased 8.8% to $134 million from $147 million in the year-ago period.Constellation Energy’s Earnings Surprise HistoryConstellation Energy’s earnings beat estimates in two out of the last four trailing quarters, met once and missed the other, delivering an average surprise of 3.23%.Image Source: Zacks Investment ResearchTwo utilities, Vistra Corp. VST and Duke Energy Corporation DUK, also produce clean electricity from nuclear sources like Constellation Energy. Vistra’s earnings beat estimates in three out of the last four trailing quarters and missed once, delivering an average surprise of 0.36%.Duke Energy’s earnings beat estimates in each of the last four trailing quarters, delivering an average surprise of 5.72%.Factors Propelling Constellation Energy ForwardConstellation Energy runs one of the nation’s largest fleets of nuclear power plants, which play a vital role in providing carbon-free electricity. These units deliver exceptionally high-capacity factors, allowing them to generate clean power reliably and consistently.Constellation Energy is expanding its renewable portfolio through investments in wind and solar projects, including its Constellation Offsite Renewables program, which helps businesses procure energy from off-site renewable facilities.CEG’s strategic investment initiatives and continued expansion of its renewable energy portfolio support its earnings growth. The company plans capital expenditures of about $3 billion in 2025 and $3.5 billion in 2026, with roughly 35% of this spending earmarked for nuclear fuel purchases, including additional supplies to rebuild inventory levels.Constellation Energy is capitalizing on growing clean energy demand by leveraging its diversified portfolio, particularly its nuclear assets. This positions the company to meet customer requirements, increase sales and advance the shift toward carbon-free power. The company’s focus on innovation and substantial investments in sustainable energy technologies also strengthens its ability to navigate market conditions and capture new opportunities.Nearly 90% of Constellation Energy’s yearly power generation is already carbon-free. The company aims to reach 95% carbon-free output by 2030 and fully 100% by 2040. This strategy can help reduce operating costs by emphasizing modern, efficient assets, while new products and services offer opportunities to create additional revenue streams.Constellation Energy’s Earnings Estimates Moving UpThe Zacks Consensus Estimate for Constellation Energy’s 2025 and 2026 earnings per share reflects a year-over-year growth of 8.77% and 21.09%, respectively.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for Vistra’s 2025 earnings per share reflects a year-over-year decline of 2%, while 2026 earnings per share reflect year-over-year growth of 22.67%.The Zacks Consensus Estimate for Duke Energy’s 2025 and 2026 earnings per share reflects year-over-year growth of 7.12% and 6.16%, respectively.CEG Stock Returns Higher Than the IndustryConstellation Energy’s trailing 12-month return on equity of 21.59% is better than the industry average of 7.99%. Return on equity, a profitability measure, reflects how effectively a company utilizes its shareholders’ funds to generate income.Image Source: Zacks Investment ResearchCEG’s Capital Return ProgramSince 2023, CEG’s board of directors has authorized the repurchase of up to $3 billion of its outstanding common stock. As of Sept. 30, 2025, there was approximately $593 million of remaining authority to repurchase shares of the company's outstanding common stock.CEG aims to increase its dividend by 10% annually, subject to the board's approval. Its quarterly dividend is 38.78 cents per share at present, resulting in an annualized dividend of $1.55. Check CEG’s dividend history here.CEG Stock Trading at a PremiumConstellation Energy is currently trading at 31.79X, a premium compared with its industry’s 23.94X on a forward 12-month P/E basis. Image Source: Zacks Investment ResearchRounding UpConstellation Energy is well-positioned to gain from increasing clean energy demand in its service territories, supported by strategic investments and a growing renewable portfolio. With strong generation capabilities, CEG is equipped to meet this rising demand.Despite the earnings miss this season, the investors can hold onto this Zacks Rank #3 (Hold) stock at the moment, enjoy the benefits of regular dividends and strong ROE. 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Click to get this free report Constellation Energy Corporation (CEG): Free Stock Analysis Report Duke Energy Corporation (DUK): Free Stock Analysis Report Vistra Corp. (VST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks