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

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NRG Energy, Inc. (NRG - Free Report) is scheduled to release third-quarter 2020 results on Nov 5, before the market opens. The company witnessed a negative earnings surprise of 16.99% in the last reported quarter.

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

Factors to Consider

Strong demand from the residential customers and a gradual improvement in demand from the Commercial and Industrial (C&I) group with the relaxation of restrictions are likely to drive third-quarter results. The company repurchased shares worth $228 million through Aug 6, 2020. Lower outstanding shares are expected to have positively impacted earnings in the third quarter.

Q3 Expectations

The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $1.01, indicating a 46.28% decrease from the year-ago period’s reported figure.

NRG Energy, Inc. Price and EPS Surprise NRG Energy, Inc. Price and EPS Surprise

NRG Energy, Inc. price-eps-surprise | NRG Energy, Inc. Quote

What Our Quantitative Model Suggests

Our proven model doesn’t conclusively predict an earnings beat for NRG 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.

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

Stocks to Consider

Here are some players from the Utilities sector that have the right combination of elements to beat on earnings in the to-be-reported quarter.

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

NiSource Inc. (NI - Free Report) is set to release third-quarter 2020 numbers on Nov 2. It has an Earnings ESP of +150.00% and is currently Zacks #3 Ranked.

SJW Group (SJW - Free Report) is set to release third-quarter 2020 results on Nov 4. It has an Earnings ESP of +2.15% and a Zacks Rank of 3 at present.

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Pinnacle West Capital Corporation (PNW) - free report >>

NiSource, Inc (NI) - free report >>

NRG Energy, Inc. (NRG) - free report >>

SJW Group (SJW) - free report >>