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NRG Energy (NRG) to Post Q1 Earnings: What's in the Offing?

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NRG Energy, Inc. (NRG - Free Report) is scheduled to release first-quarter 2022 results on May 6 before market open. NRG Energy witnessed an earnings surprise of 27.6% in the last reported quarter.

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

Factors to Consider

NRG Energy’s quarterly earnings are likely to have benefited from the ongoing share repurchases. NRG repurchased $120 million worth of shares from the date of the $1 billion repurchase authorization. The reduction in the debt balance is likely to have lowered capital servicing costs and boosted margins in the first quarter.

Expectations

The Zacks Consensus Estimate for first-quarter earnings per share is pegged at 73 cents, indicating a 13.1% decline from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for first-quarter 2022 revenues is pegged at $3.17 billion, indicating a 60.8% decline from the year-ago quarter’s reported figure.

What Our Quantitative Model Predicts

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

NRG Energy, Inc. Price and EPS Surprise

NRG Energy, Inc. Price and EPS Surprise

NRG Energy, Inc. price-eps-surprise | NRG Energy, Inc. Quote

Earnings ESP: NRG Energy 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, NRG carries a Zacks Rank #4 (Sell).

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 this reporting cycle.

MGE Energy (MGEE - Free Report) is likely to come up with an earnings beat when it reports first-quarter results on May 5 before market open. MGE Energy has an Earnings ESP of +3.63% and carries a Zacks Rank #2 at present. MGEE’s long-term earnings growth is projected at 6.1%.

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 +0.42% and carries a Zacks Rank #3 at present. D’s long-term earnings growth is projected at 6.1%.

Brookfield Renewable Partners (BEP - Free Report) is likely to come up with an earnings beat when it reports first-quarter results on May 6 before market open. Brookfield Renewable Partners has an Earnings ESP of +54.56% and carries a Zacks Rank #3 at present. The Zacks Consensus Estimate for BEP’s 2022 earnings implies year-over-year growth of 73.9%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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