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Vistra Energy (VST) to Report Q4 Earnings: What's in the Offing?

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Vistra Energy Corp. (VST - Free Report) is scheduled to release fourth-quarter results on Feb 26, before the market opens. In the last reported quarter, the company delivered an earnings surprise of 155.6%, on average.

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

Factors to Consider

Vistra Energy’s fourth-quarter earnings are likely to have benefited from the repayment of $1,150-million debt till Sep 30, 2020, which is also expected to have lowered capital servicing costs.

Retail power prices returned to moderate levels in the fourth quarter, which in turn must have resulted in higher gross margins. Vistra Energy is also anticipated to have benefited from higher residential volumes due to substantial work-at-home population.

Expectation

The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at $1.40, which indicates an increase of 180% from the year-ago reported figure.

What the Zacks Model Says

Our proven model doesn’t conclusively predict an earnings beat for Vistra 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’s not the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Vistra Corp. Price and EPS Surprise

Vistra Corp. Price and EPS Surprise

Vistra Corp. price-eps-surprise | Vistra Corp. Quote

Earnings ESP: It has an Earnings ESP of -40.71%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Vistra Energy carries a Zacks Rank #3.

Stocks to Consider

Investors can consider the following players from the same sector that have the right combination of elements to beat on earnings this season.

Essential Utilities, Inc. (WTRG - Free Report) is set to release fourth-quarter earnings on Feb 24. It has an Earnings ESP of +3.60% and a Zacks Rank of 3, currently.

CenterPoint Energy, Inc. (CNP - Free Report) is expected to release fourth-quarter numbers on Feb 25. It has an Earnings ESP of +11.11% and a Zacks Rank #3, at present.

Sempra Energy (SRE - Free Report) is expected to release fourth-quarter numbers on Feb 25. It has an Earnings ESP of +6.45% and a Zacks Rank #3, at present.

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