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TransAlta (TAC) Set to Report Q2 Earnings: What's in Store?

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TransAlta Corporation (TAC - Free Report) is expected to release second-quarter 2022 earnings on Aug 5. The utility delivered a negative earnings surprise of 52.2%, on average, for the last four reported quarters.

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

Factors to Note

TransAlta’s second-quarter earnings are likely to have benefited from its existing long-term contracts and hedged position. The repurchase of 1.4 million shares in the first quarter lowered the level of outstanding shares, which is likely to have a positive impact on earnings.

The extension of Kent Hills Wind Facilities outage in the second quarter is anticipated to have increased operating expenses and reduced the profit margin in the second quarter.

Expectations

The Zacks Consensus Estimate for second-quarter earnings per share is pegged at 12 cents. The bottom-line projection indicates a year-over-year increase of 71.4%.

What Our Quantitative Model Predicts

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

TransAlta Corporation Price and EPS Surprise

 

TransAlta Corporation Price and EPS Surprise

TransAlta Corporation price-eps-surprise | TransAlta Corporation Quote


Earnings ESP: TransAlta’s Earnings ESP is 0.00%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, TransAlta carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.

Stocks to Consider

Investors can consider players that have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Calumet Specialty Products Partners, L.P. (CLMT - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug 5. CLMT has an Earnings ESP of +30.0% and a Zacks Rank of #2 at present.

The Zacks Consensus Estimate for CLMT’s 2022 and 2023 EPS indicates 76.2% and 285.3% year-over-year growth, respectively.

Dominion Energy (D - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug 8. D has an Earnings ESP of +1.63% and a Zacks Rank of #3 at present.

Dominion Energy’s long-term earnings growth is currently pegged at 6.4%. The Zacks Consensus Estimate for D’s 2022 and 2023 EPS indicates 6.48% and 6.49% year-over-year growth, respectively.

Gevo Inc. (GEVO - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug 8. GEVO  has an Earnings ESP of +25.0% and a Zacks Rank of #2 at present.

The Zacks Consensus Estimate for GEVO’s 2023 EPS indicates 0.51% year-over-year growth.

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

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