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What's in the Cards for Xcel Energy (XEL) in Q3 Earnings?

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Xcel Energy Inc. (XEL - Free Report) is scheduled to release third-quarter earnings on Oct 29, before market open. The company delivered an earnings surprise of 17.39% in the last reported quarter.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors at Play

Amid the pandemic and lockdown restrictions, demand from Xcel Energy’s residential customers witnessed growth while the same from Commercial and Industrial (C&I) group fell significantly. With the lifting of shutdown orders, the C&I consumption is expected to have improved, though possibly falling short of reaching its pre-pandemic levels. Since the utility’s C&I group accounts for 62% of the top line, the gradual uptick in C&I demand is expected to boost its third-quarter results.

Moreover, the company’s efforts to manage its operational and maintenance expenses for reducing the adverse impact of the pandemic might aid its results.

Q3 Projections

The Zacks Consensus Estimate for third-quarter 2020 sales is pegged at $3.17 billion, indicating 5.12% growth from the year-ago quarter’s reported figure. The Consensus Estimate for third-quarter earnings per share stands at $1.08, which marks a 6.93% rise from the year-earlier quarter’s reported number.

What Our Quantitative Model Predicts

Our proven model doesn’t predict an earnings beat for Xcel Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances 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.

Xcel Energy Inc. Price and EPS Surprise

Xcel Energy Inc. Price and EPS Surprise

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

Earnings ESP: Xcel Energy 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, Xcel Energy carries a Zacks Rank #3.

Stocks to Consider

Here are some companies worth considering from the same industry, which according to our model, have the right combination of elements to beat on earnings in the upcoming releases.

CMS Energy (CMS - Free Report) is set to release third-quarter 2020 results on Oct 29. It has an Earnings ESP of +0.15% and is Zacks #3 Ranked, presently.

Southern Company (SO - Free Report) is set to release third-quarter 2020 results on Oct 29. It has an Earnings ESP of +0.54% and is a #3 Ranked player at present.

Pinnacle West Capital (PNW - Free Report) is set to release third-quarter 2020 results on Oct 30. It has an Earnings ESP of +0.98% and a Zacks Rank of 3, currently.

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