Can CEG maintain its earnings momentum into 2025?

**Constellation Energy's (CEG) prospects for maintaining earnings momentum into 2025 appear positive**, considering the following points:

1. **Strong Financial Performance**: CEG's recent financial results have exceeded expectations, with a reported net income of $850 million and total revenue of $5.38 billion for Q4 2024. The company's adjusted earnings per share (EPS) for Q4 2024 were $2.44, surpassing the analyst consensus.

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|CEG|CEG.O|Constellation Energy|2024 Q1|765.686274509804|8.83E8|185|
|CEG|CEG.O|Constellation Energy|2024 Q2|-1.820388349514563|8.09E8|185|
|CEG|CEG.O|Constellation Energy|2024 Q3|73.33333333333333|1.196E9|185|
|CEG|CEG.O|Constellation Energy|2024 Q4|2279.4871794871797|8.5E8|185|

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|CEG|CEG.O|Constellation Energy|2024 Q1|-18.559153998678124|6.161E9|185|
|CEG|CEG.O|Constellation Energy|2024 Q2|0.5325009181050312|5.475E9|185|
|CEG|CEG.O|Constellation Energy|2024 Q3|7.18376697758141|6.55E9|185|
|CEG|CEG.O|Constellation Energy|2024 Q4|-7.142857142857142|5.382E9|185|

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|CEG|CEG.O|Constellation Energy|2024 Q1|858.6206896551724|2.78|185|
|CEG|CEG.O|Constellation Energy|2024 Q2|0.7812500000000007|2.58|185|
|CEG|CEG.O|Constellation Energy|2024 Q3|69.02654867256638|3.82|185|

2. **Affirmation of 2025 Guidance**: Constellation Energy has affirmed its full-year 2025 adjusted EPS guidance range of $8.90-$9.60, which aligns with the current analyst consensus. This indicates the company's confidence in maintaining its earnings trajectory.
3. **Strategic Growth Initiatives**: CEG plans to acquire Calpine Corporation, which is expected to combine the largest producer of emissions-free energy with Calpine’s natural gas assets. This strategic move is likely to enhance the company's operational capacity and support its earnings growth.
4. **Dividend Growth Plans**: Constellation Energy has increased its annual dividend by 25% and expects to grow it by another 10% in 2025. Dividend growth is a positive indicator of the company's financial stability and confidence in its future earnings.
5. **Analyst Sentiment**: Despite a slight decrease in expected EPS for 2025 compared to the previous year, analysts remain bullish on CEG's revenue prospects, with a projected $23 billion in sales for the year. This suggests that while EPS may not show significant growth, revenue could continue to rise.
6. **Historical Performance**: While specific 3-year CAGR data is not available, the company's consistent performance and ability to outperform guidance ranges suggest a strong track record. This historical performance provides a positive basis for expecting continued earnings momentum.

In conclusion, Constellation Energy's robust financial results, strategic growth initiatives, dividend growth plans, and analyst optimism all point to a positive outlook for maintaining earnings momentum into 2025.