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Algonquin Power (AQN) Q4 Earnings: What's in the Cards?

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Algonquin Power & Utilities Corp. (AQN - Free Report) is set to release fourth-quarter 2018 results on Feb 28, after market close.

In the past four quarters, the company delivered average positive earnings surprise of 28.89%.

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

Factors in Play

The company focuses on expanding global business operations. We believe that additional interest acquisition in Atlantica and joint venture with AAGES will boost revenues and margin in the to-be-reported quarter.

The Zacks Consensus Estimate for total revenues in the fourth quarter is pegged at $414.08 million, reflecting an increase of 0.47% year over year. The consensus mark for earnings in the same period is pegged at 13 cents per share, representing a decline of 18.75% year over year.

 

Earnings Whispers

Our proven model does not show that Algonquin Power is likely to beat estimates in the upcoming quarterly release. This is because a stock needs to have a positive Earnings ESP and a favorable 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.

Earnings ESP: Algonquin Power has an Earnings ESP of -21.06%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Algonquin Power has a Zacks Rank #2, which increases the predictive power of ESP. However, the company’s negative ESP makes surprise prediction incomplete.You can see the complete list of today’s Zacks #1 Rank stocks here.

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

Recent Utility Releases

Pinnacle West Capital Corporation (PNW - Free Report) delivered adjusted earnings per share of 23 cents in the fourth quarter of 2018, which beat the Zacks Consensus Estimate of 17 cents by 35.3%.

FirstEnergy Corporation (FE - Free Report) delivered fourth-quarter 2018 operating earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 48 cents by 4.17%.

IDACORP, Inc. (IDA - Free Report) delivered fourth-quarter 2018 operating earnings of 52 cents per share, which beat the Zacks Consensus Estimate of 48 cents by 8.3%.

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