Why did CEG miss Q2 2024 expectations?

Constellation Energy's (CEG) Q2 2024 earnings fell short of expectations due to several key factors:

1. **Revenue Decline**: The company's total revenue for the quarter was $5.38 billion, which was lower than the expected revenue. This decline in revenue was likely a significant contributor to the earnings shortfall.

|code|Ticker|Name|Date|Revenue Surprise|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|CEG|CEG.O|Constellation Energy|2024 Q1|-4.6E8|6.161E9|185|
|CEG|CEG.O|Constellation Energy|2024 Q2|-4.0E7|5.475E9|185|
|CEG|CEG.O|Constellation Energy|2024 Q3|8.4E8|6.55E9|185|
|CEG|CEG.O|Constellation Energy|2024 Q4|-1.0E8|5.382E9|185|

2. **Negative Free Cash Flow**: CEG reported a negative free cash flow of $1.75 billion for the quarter. Negative free cash flow can indicate operational inefficiencies or investment-related issues that may have impacted earnings.

|code|Ticker|Name|Date|Free Cash Flow|Investing Cash Flow|Operating Cash Flow|Financing Cash Flow|market_code|
|---|---|---|---|---|---|---|---|---|
|CEG|CEG.O|Constellation Energy|2024 Q1|5.69004475E8|8.3E8|-7.23E8|8.4E7|185|
|CEG|CEG.O|Constellation Energy|2024 Q2|2.321441689E9|1.82E9|-6.13E8|-1.469E9|185|
|CEG|CEG.O|Constellation Energy|2024 Q3|4.250611248E9|2.406E9|-1.12E8|-7.95E8|185|
|CEG|CEG.O|Constellation Energy|2024 Q4|2.342197226E9|2.372E9|-1.016E9|-1.09E8|185|

3. **Lower Operating Margin**: The operating margin for CEG was 16.32%, which is below the company's net margin of 15.86%. This suggests that operating expenses may be higher than expected, contributing to the earnings shortfall.

|code|Ticker|Name|Date|Operating Profit Margin|Net Profit Margin|market_code|
|---|---|---|---|---|---|---|
|CEG|CEG.O|Constellation Energy|2024 Q1|11.134556078558676|14.3321|185|
|CEG|CEG.O|Constellation Energy|2024 Q2|14.127352410415057|14.5398|185|
|CEG|CEG.O|Constellation Energy|2024 Q3|16.287253931595732|15.8803|185|
|CEG|CEG.O|Constellation Energy|2024 Q4|16.318737270875765|15.8605|185|

In summary, Constellation Energy's Q2 2024 earnings miss can be attributed to lower-than-expected revenue, negative free cash flow, and lower operating margin. These factors combined to create a challenging financial performance for the company during the quarter.