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Chesapeake Utilities (CPK) Q1 Earnings: What's in Store?

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Chesapeake Utilities Corporation CPK is set to report first-quarter 2018 results on May 9, before the market opens. In the last reported quarter, the company posted a positive earnings surprise of 9.41%.

Let’s see how things are shaping up prior to the announcement.

Factors to Consider

Chesapeake Utilities expects strong growth in margin on the back of capital investments of $761 million during 2013-2017.

Chesapeake Utilities anticipates the corporate federal income tax rate to have a positive impact on earnings, primarily from its unregulated energy businesses.

First-quarter 2018 results will be driven by $1.6-million annualized rate increases in Florida, effective January 2018.

The Zacks Consensus Estimate for first-quarter 2018 total revenues is pegged at $207 million, reflecting an increase of 11.9% year over year. The Zacks Consensus Estimate for earnings is pegged at $1.34, reflecting a 14.5% increase from the year-ago quarter.

Earnings Whisper

Our proven model does not show earnings beat for Chesapeake Utilities in the to-be-reported quarter. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.

Zacks ESP:  Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Chesapeake Utilities carries a Zacks Rank #2, which increases possibility of a positive surprise. However, a 0.00% ESP makes beat uncertain. You can see the complete list of today’s Zacks #1 Rank stocks here.

Note that we caution against stocks with Zacks Ranks #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Upcoming Utility Sector Releases

Additionally, investors can consider stocks from the same sector that have the right combination of elements to post an earnings beat this quarter.

Just Energy Group, Inc. has an Earnings ESP of +23.08%. It carries a Zacks Rank #3 and is expected to report fourth-quarter fiscal 2018 results on May 16.

Duke Energy Corporation (DUK - Free Report) is expected to release first-quarter 2018 results on May 10. The company has an Earnings ESP of +1.66% and a Zacks Rank #3.

Ameren Corporation (AEE - Free Report) is expected to release first-quarter 2018 results on May 9. The company has an Earnings ESP of +1.45% and a Zacks Rank #3.

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