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Xcel Energy (XEL) to Post Q1 Earnings: What's in the Cards?

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Xcel Energy (XEL - Free Report) is expected to release first-quarter 2019 results on Apr 25, before market opens. In the last four quarters, this company delivered average positive earnings surprise of 5.09 %.

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

Factors at Play

In January, Xcel Energy entered into agreements to provide electric service to a new Google data center located in Minnesota. The positive impacts of the above-mentioned factor in the first quarter.

As the company is focused on renewable expansion, Xcel Energy intends to cater to the data centers’ energy requirements with 100% renewable energy. Additionally, we believe that the positive impact of steel for fuel investment strategies will be reflected in the upcoming quarterly results.

However, the company anticipates flat electric sales in 2019, due to some specific declines in large customer usage, more modest oil and natural gas driven growth as well as lower use per customer in the residential sector. We think this will impact electric sales in the first quarter.

Q1 Expectations

The Zacks Consensus Estimate for first-quarter revenues is pegged at $3.17 billion, reflecting an increase of 7.42% year over year. The Zacks Consensus Estimate for first-quarter earnings is pegged at 62 cents, reflecting an increase of 8.77% year over year.

Xcel Energy expects its earnings per share to improve in 5% to 7% range.

Earnings Whispers

Our proven model does not show that Xcel Energy is likely to beat earnings this quarter. 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. However, that is not the case here as you will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Earnings ESP is pegged at -0.43%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Xcel Energy Inc. Price and EPS Surprise

 

Xcel Energy Inc. Price and EPS Surprise | Xcel Energy Inc. Quote

 

Zacks Rank: Xcel Energy currently carries a Zacks Rank #3.

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

Stocks to Consider

Here are some companies from the industry that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

American Electric Power Company, Inc (AEP - Free Report) has an Earnings ESP of +2.11% and a Zacks Rank #3. The company is expected to release first-quarter 2019 results on Apr 25.

NextEra Energy, Inc (NEE - Free Report) has an Earnings ESP of +2.64% and a Zacks Rank #3. The company is expected to release first-quarter 2019 results on Apr 23.

Dominion Energy Inc (D - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank #3. The company is expected to release first-quarter 2019 results on May 3.

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