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Xcel Energy (XEL) to Report Q1 Earnings: What's in the Offing?

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Xcel Energy Inc. (XEL - Free Report) is scheduled to release first-quarter 2022 earnings on Apr 28 before market open. Xcel Energy posted operating earnings of 58 cents per share in the last reported quarter, on par with the Zacks Consensus Estimate.

Let’s see how things have shaped up before the upcoming earnings announcement.

Factors to Note

An expanding customer base and the approval for an interim rate increase for electric and natural gas customers are likely to have boosted revenues in the first quarter. The completion of four wind farms, which added 800 megawatts of owned wind capacity, and the installation of more than 300,000 smart meters as part of the advanced grid program are likely to have increased financial margins in the first quarter.

First-quarter results are likely to be impacted by an increase in the operating and maintenance expenses by 1% to 2%, driven by wind farm additions, increased spending on electric vehicle programs and other customer initiatives.

Expectation

The Zacks Consensus Estimate for first-quarter earnings is pegged at 69 cents per share, indicating a 3% rise from the year-ago reported figure.

The Zacks Consensus Estimate for first-quarter sales is pegged at $3.57 billion, suggesting growth of 0.9% from the year-ago reported figure.

What the Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for XEL this time. 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, which is not the case here as you will see below.

Xcel Energy Inc. Price and EPS Surprise

Xcel Energy Inc. Price and EPS Surprise

 

Xcel Energy Inc. price-eps-surprise | Xcel Energy Inc. Quote

 

Earnings ESP: Xcel Energy has an Earnings ESP of -1.45%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Xcel Energy carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Investors can consider the following players from the same industry who have the right combination of elements to beat earnings in the upcoming releases.

Eversource Energy (ES - Free Report) is likely to come up with an earnings beat when it reports first-quarter results on May 5 before market open. Eversource Energy has an Earnings ESP of +0.80% and carries a Zacks Rank #3 at present. ES’ long-term (three to five years) earnings growth is projected at 6.2%.

Dominion Energy (D - Free Report) is likely to come up with an earnings beat when it reports first-quarter results on May 5 before market open. Dominion Energy has an Earnings ESP of +0.85% and carries a Zacks Rank #3 at present. D’s long-term earnings growth is projected at 6.1%.

Algonquin Power & Utilities (AQN - Free Report) is likely to come up with an earnings beat when it reports first-quarter results on May 12 after market close. Algonquin Power & Utilities has an Earnings ESP of +20.43% and carries a Zacks Rank #2 at present. AQN’s long-term earnings growth is projected at 8.7%.