(CEG) - company increased revenues for the past nine years

Constellation Energy Group Inc. (CEG) beat the Street's earnings estimate in 13 out of the past 16 quarters, most recently by 19.2%. Earnings per share are forecasted to grow 12% over the next 3-5 years. The company has a current dividend yield of 2.5% and a five-year average dividend yield of 2.8%. Its return on equity betters that of the industry average—13% compared to 11%. Full Analysis Constellation Energy Group Inc., through its subsidiaries, provides energy solutions to commercial and industrial customers in North America. The company operates through three segments: merchant energy, regulated electric and regulated gas. CEG exceeded analysts' earnings expectations in 13 out of the past 16 quarters by an average margin of 14.4%. Earnings per share grew 9% over the past five years and are forecasted to grow by a larger magnitude going forward—12% over the next 3-5 years. The industry is expected to grow at a 7% clip. The company is expected to release its third-quarter results on Oct 27. On Jul 28, CEG posted second-quarter earnings per share of 56 cents. With the Street projecting 47 cents, this amounted to a 19.2% positive earnings surprise. Total revenues jumped 27.0% to $4.42 billion from $3.48 billion in the prior-year period. Chairman, President and CEO Mayo A. Shattuck III stated, “Our confidence in our long-term outlook is strengthening as we execute our plan and build the backlog for future earnings. With earnings guidance for 2008 representing compounded annual growth of 22 to 28% from 2006, Constellation Energy's independent course and financial outlook have never been stronger.” The company increased revenues for the past nine years. Profits have risen for the past two, most recently by 15.5% in 2005. The Board of Directors declared a quarterly cash dividend of 37.75 cents per share on Jul 21. The company has a current dividend yield of 2.5% and a five-year average dividend yield of 2.8%. At year-end 2005, CEG and FPL Group, Inc. (FPL) announced plans to merge and create the nation's largest competitive energy supplier, the second-largest electric utility, the third-largest nuclear plant operator and the leading provider of wind power. The combined company would have a diverse geographic presence, with 5.5 million electric customers in Florida and Maryland, 625,000 gas customers in Maryland and thousands of commercial, industrial and utility customers across the country. The proposed merger requires regulatory approval by next June or it can be terminated. CEG's return on equity of 13%, a common measure of management effectiveness, tops the industry average of 11%. CEG is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home Tags: CEG, Constellation Energy Group, Stock-market, Stocks, Investing, Stock Trading, Business, Finance, Trading, Investing Newsletter, Stock Picks, earnings, analysts, analysts estimates