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Xcel Energy (XEL) to Report Q2 Earnings: What's in the Cards?
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Xcel Energy Inc. (XEL - Free Report) is scheduled to release second-quarter 2023 results on Jul 27, before market open. The company delivered an earnings surprise of 2.7% in the last reported quarter.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Consider
Xcel Energy’s second-quarter earnings are likely to have benefited from the new electric and natural gas rates that became effective during the quarter. Similar to the first quarter, stable contribution from Electric Commercial & Industrial customers is expected to have benefited second-quarter earnings.
Improvements in productivity and efficiency, which are anticipated to lower operating and maintenance (O&M) costs, are likely to have had a positive impact on XEL’s performance. Owing to such initiatives, our Zacks model predicts a 18.8% and 2.5% decline in O&M and total operating expenses in the to-be-reported quarter.
Q2 Expectations
The Zacks Consensus Estimate for Xcel Energy’s earnings is pegged at 61 cents per share, implying a year-over-year increase of 1.7%. The consensus mark for revenues is pinned at $3.45 billion, indicating a 0.8% improvement year over year.
The Zacks Consensus Estimate for XEL’s total operating revenues for the Electric unit is pegged at $3,006 million, indicating growth of 2.8% from the year-ago quarter’s reported figure. The consensus estimate for Natural Gas residential customers is pegged at $408 million, which is 67.7% of total revenues. The unit contributed 54% in the year-ago quarter.
Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Xcel Energy 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.
Earnings ESP: XEL’s Earnings ESP is -25.74%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, the company carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are a few players from the same industry that have the right combination of elements to come up with an earnings beat this reporting cycle.
NextEra Energy, Inc. (NEE - Free Report) is likely to report an earnings beat when it announces second-quarter results on Jul 25, before market open. It has an Earnings ESP of +2.08% and a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
NEE’s long-term (three to five years) earnings growth rate is 8.38%. It delivered an average earnings surprise of 7.4% in the last four quarters.
Public Service Enterprise Group Inc. (PEG - Free Report) is expected to come up with an earnings beat when it reports second-quarter results on Aug 1, before market open. It has an Earnings ESP of +15.2% and a Zacks Rank #2 at present.
PEG’s long-term earnings growth rate is 4.33%. It delivered an average earnings surprise of 4.33% in the last four quarters.
Entergy Corporation (ETR - Free Report) is expected to report an earnings beat when it announces second-quarter results on Aug 2, before market open. It has an Earnings ESP of +1.14% and a Zacks Rank #2 at present.
ETR’s long-term earnings growth rate is 5.69%. It delivered an average earnings surprise of 7.5% in the last four quarters.
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Xcel Energy (XEL) to Report Q2 Earnings: What's in the Cards?
Xcel Energy Inc. (XEL - Free Report) is scheduled to release second-quarter 2023 results on Jul 27, before market open. The company delivered an earnings surprise of 2.7% in the last reported quarter.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Consider
Xcel Energy’s second-quarter earnings are likely to have benefited from the new electric and natural gas rates that became effective during the quarter. Similar to the first quarter, stable contribution from Electric Commercial & Industrial customers is expected to have benefited second-quarter earnings.
Improvements in productivity and efficiency, which are anticipated to lower operating and maintenance (O&M) costs, are likely to have had a positive impact on XEL’s performance. Owing to such initiatives, our Zacks model predicts a 18.8% and 2.5% decline in O&M and total operating expenses in the to-be-reported quarter.
Q2 Expectations
The Zacks Consensus Estimate for Xcel Energy’s earnings is pegged at 61 cents per share, implying a year-over-year increase of 1.7%. The consensus mark for revenues is pinned at $3.45 billion, indicating a 0.8% improvement year over year.
The Zacks Consensus Estimate for XEL’s total operating revenues for the Electric unit is pegged at $3,006 million, indicating growth of 2.8% from the year-ago quarter’s reported figure. The consensus estimate for Natural Gas residential customers is pegged at $408 million, which is 67.7% of total revenues. The unit contributed 54% in the year-ago quarter.
Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Xcel Energy 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.
Xcel Energy Inc. Price and EPS Surprise
Xcel Energy Inc. price-eps-surprise | Xcel Energy Inc. Quote
Earnings ESP: XEL’s Earnings ESP is -25.74%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, the company carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are a few players from the same industry that have the right combination of elements to come up with an earnings beat this reporting cycle.
NextEra Energy, Inc. (NEE - Free Report) is likely to report an earnings beat when it announces second-quarter results on Jul 25, before market open. It has an Earnings ESP of +2.08% and a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
NEE’s long-term (three to five years) earnings growth rate is 8.38%. It delivered an average earnings surprise of 7.4% in the last four quarters.
Public Service Enterprise Group Inc. (PEG - Free Report) is expected to come up with an earnings beat when it reports second-quarter results on Aug 1, before market open. It has an Earnings ESP of +15.2% and a Zacks Rank #2 at present.
PEG’s long-term earnings growth rate is 4.33%. It delivered an average earnings surprise of 4.33% in the last four quarters.
Entergy Corporation (ETR - Free Report) is expected to report an earnings beat when it announces second-quarter results on Aug 2, before market open. It has an Earnings ESP of +1.14% and a Zacks Rank #2 at present.
ETR’s long-term earnings growth rate is 5.69%. It delivered an average earnings surprise of 7.5% in the last four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.