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What's in Store for NextEra Energy Partners (NEP) Q2 Earnings?

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NextEra Energy Partners, LP (NEP - Free Report) is scheduled to release second-quarter 2020 earnings on Jul 24, before market open. The partnership witnessed a negative earnings surprise of 1310.71% in the last reported quarter.

Let’s focus on the factors that might have impacted the firm’s earnings in the second quarter.

Factors to Consider

NextEra Energy Partners is well positioned to execute its long-term strategic objectives, courtesy of its strong financial position. The existing high-quality asset portfolio of the firm and that more than 15 years are remaining of the contract life of its clean energy projects assure stable long-term cash flow for the firm. Second-quarter results are expected to reflect these upsides.

However, the unprecedented economic crisis and a lockdown on business activities during the to-be-reported quarter might have adversely impacted the firm’s earnings.

Which Way Are Estimates Trending?

The Zacks Consensus Estimate for second-quarter 2020 earnings and revenues is pegged at 55 cents per unit and $332.81 million, respectively. The top- and the bottom-line figures indicate a respective rise of 51.97% and 212.24% from the year-ago quarter’s reported numbers.

What Our Quantitative Model Predicts

Our proven model doesn’t predict an earnings beat for NextEra Energy Partners this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But 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: NextEra Energy Partners has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, NextEra Energy Partners carries a Zacks Rank #5 (Strong Sell).

Stocks to Consider

Here are some companies worth considering from the sector  as our model shows that these have the right combination of elements to beat on earnings this season.

Southwestern Energy Company (SWN - Free Report) has an Earnings ESP of +12.26% and a Zacks Rank #3, currently. The company is expected to report second-quarter 2020 results on Jul 30.

Bloom Energy Corporation (BE - Free Report) has an Earnings ESP of +21.88% and a Zacks Rank of 3 at present. The company is expected to release second-quarter 2020 results on Jul28.

Gevo, Inc. (GEVO - Free Report) has an Earnings ESP of +40.00% and a Zacks Rank #2, currently. The company is expected to release second-quarter 2020 results on Aug 10.

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