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What's in Store for NextEra Energy (NEE) in Q1 Earnings?
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NextEra Energy, Inc. (NEE - Free Report) is scheduled to release first-quarter 2018 results before the opening bell on Apr 24. Last quarter, this utility reported a negative earnings surprise of 4.6%. Let’s see how things are shaping up prior to this announcement.
Factors at Play
Management expects NextEra Energy’s performance in the first half of 2018 to be softer in comparison to second half results. The company expects its subsidiary Florida Power & Light Company’s (FPL) performance to be lower than expected, as tax savings will not immediately offset its typical reserve amortization requirements. This is going to have an adverse impact on earnings in the first quarter.
In January 2018, FPL announced its plans to apply federal tax savings toward the Hurricane Irma restoration cost of $1.3 billion. Otherwise, it would have increased utility bills of 4.9 million customers in the first quarter of 2018.
However, the economy of Florida remains sturdy, with its current unemployment rate below the national average. Plus, new building permits indicate customer additions and an increase in demand from the residential space.
Earnings Whispers
Our proven model does not conclusively show that NextEra Energy is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The company’s Earnings ESP is pegged at -0.29%.
Zacks Rank: NextEra Energy carries a Zacks Rank #3. Though the Zacks Rank #3 increases the possibility of a beat, an ESP of -0.29% makes it unlikely this season.
We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Instead, here are a few players from the industry that have the right combination of elements to post an earnings beat this quarter.
Xcel Energy Inc. (XEL - Free Report) is anticipated to release first-quarter 2018 results on Apr 26, 2018. It has an Earnings ESP of +2.31% and a Zacks Rank #2.
CMS Energy Corporation (CMS - Free Report) is expected to release first-quarter 2018 numbers on Apr 26, 2018. It has an Earnings ESP of +3.41% and carries a Zacks Rank #2.
Vistra Energy Corp. (VST - Free Report) is anticipated to release first-quarter 2018 results on May 4, 2018. It has an Earnings ESP of +57.41% and a Zacks Rank #2.
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Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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What's in Store for NextEra Energy (NEE) in Q1 Earnings?
NextEra Energy, Inc. (NEE - Free Report) is scheduled to release first-quarter 2018 results before the opening bell on Apr 24. Last quarter, this utility reported a negative earnings surprise of 4.6%. Let’s see how things are shaping up prior to this announcement.
Factors at Play
Management expects NextEra Energy’s performance in the first half of 2018 to be softer in comparison to second half results. The company expects its subsidiary Florida Power & Light Company’s (FPL) performance to be lower than expected, as tax savings will not immediately offset its typical reserve amortization requirements. This is going to have an adverse impact on earnings in the first quarter.
In January 2018, FPL announced its plans to apply federal tax savings toward the Hurricane Irma restoration cost of $1.3 billion. Otherwise, it would have increased utility bills of 4.9 million customers in the first quarter of 2018.
However, the economy of Florida remains sturdy, with its current unemployment rate below the national average. Plus, new building permits indicate customer additions and an increase in demand from the residential space.
Earnings Whispers
Our proven model does not conclusively show that NextEra Energy is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.
NextEra Energy, Inc. Price and EPS Surprise
NextEra Energy, Inc. Price and EPS Surprise | NextEra Energy, Inc. Quote
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The company’s Earnings ESP is pegged at -0.29%.
Zacks Rank: NextEra Energy carries a Zacks Rank #3. Though the Zacks Rank #3 increases the possibility of a beat, an ESP of -0.29% makes it unlikely this season.
We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Instead, here are a few players from the industry that have the right combination of elements to post an earnings beat this quarter.
Xcel Energy Inc. (XEL - Free Report) is anticipated to release first-quarter 2018 results on Apr 26, 2018. It has an Earnings ESP of +2.31% and a Zacks Rank #2.
CMS Energy Corporation (CMS - Free Report) is expected to release first-quarter 2018 numbers on Apr 26, 2018. It has an Earnings ESP of +3.41% and carries a Zacks Rank #2.
Vistra Energy Corp. (VST - Free Report) is anticipated to release first-quarter 2018 results on May 4, 2018. It has an Earnings ESP of +57.41% and a Zacks Rank #2.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>