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What to Expect From NextEra Energy Partners (NEP) Q4 Earnings

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NextEra Energy Partners, LP (NEP - Free Report) is scheduled to release fourth-quarter 2020 earnings on Jan 26, before market open. The partnership delivered an earnings surprise of 22.6% in the last reported quarter.

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

Factors to Consider

NextEra Energy Partners’ efforts to execute long-term strategic objectives and focus on the United States are expected to have boosted its fourth-quarter performance. Completion of two organic growth projects in the third quarter is likely to have benefited its earnings in the fourth quarter.

During the quarter, the company successfully converted $300 million convertible debt into common units. This is expected to have created value for unitholders and led to cash savings due to reduction in interest payment.

Trend in Estimate Revision

The Zacks Consensus Estimate for fourth-quarter earnings and revenues is pegged at 38 cents per unit and $321.98 million, respectively. The projected revenues indicate a rise of 56.3%, while the bottom-line estimate indicates a decline of 24% from the year-ago 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 #3.

Stocks to Consider

Here are a few stocks from the same industry that have the right combination of elements to post an earnings beat in the upcoming releases:

Clearway Energy (CWEN - Free Report) is likely to come up with a beat when it reports fourth-quarter results. It has an Earnings ESP of +1.22% and a Zacks Rank #3.

TC Energy Corporation (TRP - Free Report) is likely to come up with a beat when it reports fourth-quarter results. It has an Earnings ESP of +4.46% and a Zacks Rank #3.

Ameresco Inc. (AMRC - Free Report) is likely to surpass earnings estimates when it reports fourth-quarter 2020 results. It has an Earnings ESP of +5.08% and a Zacks Rank #2.

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