How did CEG's Q3 2024 earnings surprise the market?

Constellation Energy Corporation (CEG) reported its Q3 2024 earnings, which notably included a significant decline in net income and revenue compared to the prior year's same quarter. Below are the specifics and their implications: 1. **Significant Net Income Decline**: CEG's net income for Q3 2024 was $850 million. This is a substantial decrease from the $1.34 billion reported in the same quarter of the previous year, indicating a notable deterioration in profitability. 2. **Revenue Reduction**: The total revenue for the quarter was $5.38 billion, which is a decrease from the $6.46 billion recorded in Q3 2023. This reduction in revenue underscores the impact of the declining net income on the company's overall financial performance. 3. **Market Reaction and Analyst Expectations**: Prior to the earnings release, analysts had forecasted an EPS of $1.98 for the quarter, reflecting an 8.79% increase from the previous year's same quarter. However, the actual EPS was lower, potentially contributing to the negative market reaction. Additionally, the consensus estimate for revenue was $4.46 billion, which is a 27.56% decrease year-over-year. This discrepancy between the actual revenue and estimates may have led to further market disappointment. In summary, CEG's Q3 2024 earnings fell short of market expectations, with both net income and revenue experiencing notable declines. This performance likely contributed to the company's stock depreciation and could have significant implications for investor sentiment and future business strategies.