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What's in Store for NextEra Energy Partners (NEP) in Q4 Earnings?

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NextEra Energy Partners, LP (NEP - Free Report) is scheduled to release fourth-quarter 2023 results on Jan 25, before market open. The firm delivered an earnings surprise of 18.8% in the last reported quarter.

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

Factors to Consider

The firm’s fourth-quarter earnings are expected to have benefited from the continued expansion of its high-quality portfolio of renewable energy sources.

Yellow Pine Solar, a 125 megawatt (MW) solar power plant and a 65-MW storage facility in Nevada that began commercial operations during the third quarter are likely to have contributed positively to NextEra Energy Partners' fourth-quarter profitability.

The firm continues to enjoy structural tax advantages and is not likely to pay meaningful U.S. taxes for at least 15 years. This might have also boosted its fourth-quarter earnings.

However, higher interest rates might have offset some positives in the to-be-reported quarter.

Q4 Expectations

The Zacks Consensus Estimate for NextEra Energy Partners’ earnings is pegged at 4 cents per unit, implying a year-over-year decline of 90%.

The Zacks Consensus Estimate for revenues is pinned at $369.2 million, indicating a 38.8% improvement year over year.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for NextEra Energy Partners 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: NEP’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, the firm carries a Zacks Rank #4 (Sell).

You can see the complete list of today's Zacks #1 Rank stocks here.

Stocks to Consider

Here are a few players from the same sector that have the right combination of elements to come up with an earnings beat this reporting cycle.

CNX Resources (CNX - Free Report) is expected to come up with an earnings beat when it reports fourth-quarter results on Jan 25, before market open. It has an Earnings ESP of +3.25% and a Zacks Rank #3 at present.

CNX’s long-term (three to five years) earnings growth rate is 5.56%. It delivered an average earnings surprise of 67.6% in the last four quarters.

Plains All American Pipeline (PAA - Free Report) is expected to post an earnings beat when it announces fourth-quarter results on Feb 9, before market open. It has an Earnings ESP of +6.12% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for PAA’s earnings is pegged at 37 cents per unit. The firm delivered an average earnings surprise of 18.3% in the last four quarters.

ONEOK (OKE - Free Report) is likely to report an earnings beat when it announces fourth-quarter results on Feb 26, after market close. It has an Earnings ESP of +20.78% and a Zacks Rank #3 at present.

OKE’s long-term earnings growth rate is 7.64%. The company delivered an average earnings surprise of 6% in the last four quarters.

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

 

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