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NRG Energy (NRG) to Report Q2 Earnings: Here's What to Expect

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NRG Energy, Inc. (NRG - Free Report) is scheduled to release second-quarter 2023 results on Aug 8, before market open. The company delivered a negative earnings surprise of 4.44% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors to Consider

During the first quarter, NRG Energy had completed the acquisition of Vivint Smart Home, which is expected to have further enhanced NRG’s earnings and boosted customer base in the second quarter. Strong consumer patterns are expected to have benefited the company’s quarterly results.

NRG Energy’s earnings are likely to have benefited from the recurring synergies from Direct Energy Integration. The company’s debt reduction initiatives might have benefited its bottom-line performance.

NRG is also expected to have gained from the ongoing share repurchases that might have reduced its outstanding shares and boosted earnings.

Q2 Expectations

The Zacks Consensus Estimate for earnings is pegged at $1.07 per share, indicating a year-over-year increase of 224.2%.

The Zacks Consensus Estimate for revenues is pinned at $4.52 billion, implying a year-over-year decrease of 37.9%.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for NRG 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.  
 

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: The company’s Earnings ESP is -28.04%.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Another Stock to Consider

Investors may also consider the following player from the same industry as this too has the right combination of elements to post an earnings beat this reporting cycle.

ALLETE (ALE - Free Report) is likely to report an earnings beat when it announces second-quarter results on Aug 8, before market open. It has an Earnings ESP of +2.56% and a Zacks Rank #3 at present.

ALE’s long-term (three to five years) earnings growth rate is 8.1%. The Zacks Consensus Estimate for earnings is pegged at 78 cents per share, indicating a year-over-year increase of 16.4%.

Other Recent Releases

NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2023 adjusted earnings of 88 cents per share, which beat the Zacks Consensus Estimate of 83 cents by 6%.

The Zacks Consensus Estimate for NEE’s 2023 earnings is pinned at $3.11 per share, indicating year-over-year growth of 7.3%.

WEC Energy Group (WEC - Free Report) reported second-quarter 2023 earnings of 92 cents per share, which beat the Zacks Consensus Estimate of 85 cents by 8.24%.

WEC’s long-term earnings growth rate is 5.76%. It delivered an average earnings surprise of 7% in the last four quarters.

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

 

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