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NextEra Energy Partners' (NEP) Q3 Earnings: What's in Offer?

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NextEra Energy Partners, LP (NEP - Free Report) is scheduled to release third-quarter 2021 earnings on Oct 20, before market open. The partnership delivered a negative earnings surprise of 244.8% in the last-reported quarter.

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

Factors to Consider

NextEra Energy Partners’ access to new renewable assets from third parties and Energy Resources is expected to have acted as a tailwind for its third-quarter performance. The firm is likely to have benefited from its low-cost convertible equity products, which continue to lower its cost of capital.

The firm’s strong control over wind and solar assets' operating and maintenance expenses is expected to benefit results in the third quarter.

Expectation

The Zacks Consensus Estimate for third-quarter earnings and revenues is pegged at 58 cents per unit and $342.34 million, respectively. The projected revenues indicate a rise of 42.6%, while earnings per share suggest a decline of 28.7% from the year-ago reported number.

What Our Quantitative Model Predicts

Our proven model does not predict an earnings beat for NextEra Energy 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

 

Earnings ESP: NextEra Energy Partners has an Earnings ESP of -10.82%. 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 has a Zacks Rank #3.

Stocks to Consider

You can consider some other stocks from the sector that have the right combination of elements to deliver an earnings beat this season.

TotalEnergies SE (TTE - Free Report) is set to release third-quarter 2021 results on Oct 28. It has an Earnings ESP of +1.72% and a Zacks Rank of 2.

Ormat Technologies, Inc. (ORA - Free Report) is set to release third-quarter 2021 results on Nov 3. It has an Earnings ESP of +76.47% and a Zacks Rank of 2.

Occidental Petroleum Corporation (OXY - Free Report) is set to release third-quarter 2021 results on Nov 4. It has an Earnings ESP of +6.06% and a Zacks Rank of 2.