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NRG Energy (NRG) to Post Q2 Earnings: What's in the Offing?

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NRG Energy, Inc. (NRG - Free Report) is scheduled to release second-quarter 2022 results on Aug 4 before market open. NRG Energy witnessed a negative earnings surprise of 54.6% 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 ongoing share repurchases, which have reduced its outstanding shares. The return of the Limestone power plant in Texas on time and within budget is also likely to have boosted margins in the second quarter.

Despite inflationary pressures, the second-quarter earnings of NRG Energy are likely to have been driven by the stable performance of its diversified portfolio of assets.

Expectations

The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $1.08, indicating a 10% decline from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for second-quarter 2022 revenues is pegged at $4.9 billion, indicating a 6% 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 #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 this reporting cycle.

WEC Energy Group (WEC - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug 2 before market open. WEC Energy has an Earnings ESP of +0.08% and carries a Zacks Rank #2 at present. WEC’s long-term (three to five years) earnings growth is projected at 6.1%.

Entergy Corporation (ETR - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug 3 before market open. Entergy has an Earnings ESP of +0.35% and carries a Zacks Rank #3 at present. ETR’s long-term earnings growth is projected at 6.7%.

Dominion Energy (D - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug 8 before market open. Dominion Energy has an Earnings ESP of +1.63% and carries a Zacks Rank #3 at present. D’s long-term earnings growth is projected at 6.4%.

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

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