Constellation Energy's profits tumble despite revenue growth and dividend hike
Constellation Energy has reported a sharp decline in annual profits despite a rise in revenue. The company's earnings per share fell from $11.89 to $7.40, while fourth-quarter profit dropped by nearly half. Yet, investor confidence remains strong, with shares climbing nearly 6% after the announcement.
The energy firm's annual revenue grew to $25.5 billion, up from previous figures. However, net profit for the year fell from $3.7 billion to $2.3 billion. Fourth-quarter profit also saw a steep decline, shrinking from $852 million to $432 million.
Analysts have offered differing outlooks on the stock's potential. Price targets now range between $348 and $398, reflecting uncertainty in the market. Even so, the company's recent moves have boosted investor sentiment.
Constellation Energy announced a 10% increase in its quarterly dividend, raising it from $0.3878 to $0.4265 per share. Shareholders on record by March 9 will receive the higher payout on March 20. The dividend hike and new major contracts have helped sustain market optimism, despite Citigroup lowering its price target.
The company's stock price rose to around $312, reflecting confidence in its long-term strategy. While profits have declined, the dividend increase and new contracts suggest a focus on growth. Shareholders will now watch for further developments in the coming months.
