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NextEra Energy Partners (NEP) to Post Q1 Earnings: What to Expect

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NextEra Energy Partners, LP (NEP - Free Report) is scheduled to release first-quarter 2021 earnings on Apr 21, before market open. The partnership delivered an earnings surprise of 123.7% in the last reported quarter.

Let’s focus on the factors that might have impacted the firm’s earnings in the March 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 first-quarter performance. Last year, the company converted $300 million convertible debt to equity, which must have lowered interest payment burden in the first quarter.

Completion of three organic growth projects in 2020 is likely to have benefited its earnings in the first quarter. The firm is also expected to have benefited from the high-quality clean energy portfolio.

Trend in Estimate Revision

The Zacks Consensus Estimate for first-quarter earnings and revenues is pegged at 33 cents per unit and $295.1 million, respectively. The projected revenues and earnings per unit indicate a rise of 39.2% and 109.7%, respectively, from the year-ago reported numbers.

What Our Quantitative Model Predicts

Our proven model does not predict an earnings beat for NextEra Partners this time around. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. 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: It has an Earnings ESP of +86.26%. 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 a few stocks from the same sector that have the right combination of elements to post an earnings beat in the upcoming releases:

Ormat Technologies Inc. (ORA - Free Report) is scheduled to release first-quarter 2021 results on May 5, 2021. It has an Earnings ESP of +12.66% and a Zacks Rank #3.

Linde (LIN - Free Report) is scheduled to release first-quarter 2021 results on May 6, 2021. It has an Earnings ESP of +0.57% and a Zacks Rank #2.

EOG Resources (EOG - Free Report) is scheduled to release first-quarter 2021 results on May 7, 2021. It has an Earnings ESP of +14.8% and sports a Zacks Rank #1.

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