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Utility Stock Q2 Earnings Due on Jul 31: ETR, SO & More

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The domestic-focused matured and regulated Utility stocks are expected to come up with strong performance this earnings season.

New rates in service territories, customer growth, and effective management and control of expenses will have a positive impact on earnings of utilities. Mature utilities gain from new technologies to maintain transmission and distribution lines, introduction of smart meters in their service territories, as well as regular measures to improve the resilience of services.

As a result, the Utility sector is one of the eight Zacks sectors (16 in total) likely to come up with improved year-over-year earnings in the current reporting cycle. Earnings in the second quarter are expected to improve 0.2% on the back of a 1.7% year-over-year improvement in revenues. For more details on quarterly releases, you can go through the latest Earnings Preview.

Interest rate hikes are always a concern for capital-intensive utility stocks. However, the cautious approach of Federal Reserve on rate hikes — declaring no more hikes in 2019 and the possibility of rate cuts in the near future — comes as a breather for utilities.

Amid such a positive scenario, let's take a look at some Utility stocks that are scheduled to report second-quarter 2019 earnings on Jul 31 and find out how things are shaping up prior to the announcement.

You can see  the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Entergy Corporation (ETR - Free Report) outperformed the Zacks Consensus Estimate in three out of the trailing four quarters, with the average positive surprise being 21.88%. The company is expected to gain from above-average temperatures, which boost demand for utility services. This may have a positive impact on earnings.

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has high chances of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Entergy Corporation has a Zacks Rank #2 and an Earnings ESP of +1.40%. (Read more: Entergy to Post Q2 Earnings: Is a Beat in the Cards?)

Entergy Corporation Price and EPS Surprise

Entergy Corporation Price and EPS Surprise

Entergy Corporation price-eps-surprise | Entergy Corporation Quote

Southern Company (SO - Free Report) outperformed the Zacks Consensus Estimate in three out of the trailing four quarters, with the average positive surprise being 6.66%. The company is expected to benefit from regulated earnings and increase in customer base.

Southern Company has an Earnings ESP of +0.46% and a Zacks Rank #3. (Read more: Is a Beat Likely for Southern Company in Q2 Earnings?)

Southern Company (The) Price and EPS Surprise

Southern Company (The) Price and EPS Surprise

Southern Company (The) price-eps-surprise | Southern Company (The) Quote

Dominion Energy (D - Free Report) outperformed the Zacks Consensus Estimate in two out of the trailing four quarters, with the average positive surprise being 2.46%. Its results are expected to gain from regulated investment and the addition of Southeast Energy Group. However, higher share count, Millstone refueling outage, sale of assets and farmout timings are likely to offset these positives to some extent.

Dominion Energy has an Earnings ESP of 0.00% and a Zacks Rank #3. (Read more: Dominion Energy to Report Q2 Earnings: What's in Store?)

Dominion Energy Inc. Price and EPS Surprise

Dominion Energy Inc. Price and EPS Surprise

Dominion Energy Inc. price-eps-surprise | Dominion Energy Inc. Quote

Eversource Energy (ES - Free Report) outperformed the Zacks Consensus Estimate in three out of the trailing four quarters, with the average positive surprise being 2.73%. Its second-quarter results are expected to benefit from electric rate increases in its Connecticut Light and Power Company (CL&P) service territories. However, higher interest expenses could offset some of the positives.

Eversource Energy has an Earnings ESP of 0.00% and a Zacks Rank #3. (Read more: Eversource to Report Q2 Earnings: What's in the Cards?)

Eversource Energy Price and EPS Surprise

Eversource Energy Price and EPS Surprise

Eversource Energy price-eps-surprise | Eversource Energy Quote

NiSource Inc. (NI - Free Report) outperformed the Zacks Consensus Estimate in three out of the trailing four quarters, with the average positive surprise being 13.41%. The company is expected to gain from new rate hikes during the quarter. Yet, expenses related to Greater Lawrence restoration could largely affect the to-be-reported quarter’s earnings.

NiSource has an Earnings ESP of 0.00% and a Zacks Rank #3. (Read more: NiSource to Post Q2 Earnings: What's in the Cards?)

NiSource, Inc Price and EPS Surprise

NiSource, Inc Price and EPS Surprise

NiSource, Inc price-eps-surprise | NiSource, Inc Quote

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