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What's in Store for Constellation Energy (CEG) in Q4 Earnings?
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Constellation Energy Corporation (CEG - Free Report) is scheduled to release fourth-quarter 2023 results on Feb 27, before market open. The company delivered an earnings surprise of 65% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Consider
In November 2023, Constellation Energy completed the acquisition of NRG Energy’s 44% ownership stake in the South Texas Project Electric Generating Station, a 2,645-megawatt, dual-unit nuclear plant. CEG’s stake represents approximately 1,100 megawatts of the plant’s output. This is expected to have boosted CEG’s overall performance in the fourth quarter.
The efficiently run organic nuclear, renewable and natural gas fleet has contributed to the strong performance of the company.
The systematic share repurchases in the first nine months of 2023 are likely to have had a positive impact on fourth-quarter earnings.
Lower operating expenses might have also contributed positively to the fourth-quarter earnings.
Q4 Expectations
The Zacks Consensus Estimate for earnings is pegged at $1.71 per share, indicating a year-over-year increase of 1,610%.
The Zacks Consensus Estimate for revenues is pinned at $7.76 billion, indicating an improvement of 5.9% year over year.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Constellation 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, which is the case here, as you will see below.
Constellation Energy Corporation Price and EPS Surprise
Earnings ESP: The company’s Earnings ESP is +2.05%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Investors may also consider the following players from the same sector, as these too have the right combination of elements to come up with an earnings beat this reporting cycle.
Delek US Holdings (DK - Free Report) is expected to come up with an earnings beat when it announces fourth-quarter results on Feb 27, before market open. It has an Earnings ESP of +6.40% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for DK’s fourth-quarter earnings is pegged at a loss of $1.28 per share. It delivered an average earnings surprise of 34.2% in the last four quarters.
KINETIK HLDGS (KNTK - Free Report) is likely to report an earnings beat when it announces fourth-quarter results on Feb 28, after market close. It has an Earnings ESP of +0.73% and a Zacks Rank #3 at present.
KNTK’s long-term (three to five years) earnings growth rate is 18%. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 46 cents per share.
Kodiak Gas Services, Inc. (KGS - Free Report) is expected to post an earnings beat when it announces fourth-quarter results on Mar 6, after market close. It has an Earnings ESP of +20% and a Zacks Rank #3 at present.
KGS’ long-term earnings growth rate is 16.4%. It delivered an average earnings surprise of 58.3% in the last four quarters.
Image: Bigstock
What's in Store for Constellation Energy (CEG) in Q4 Earnings?
Constellation Energy Corporation (CEG - Free Report) is scheduled to release fourth-quarter 2023 results on Feb 27, before market open. The company delivered an earnings surprise of 65% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Consider
In November 2023, Constellation Energy completed the acquisition of NRG Energy’s 44% ownership stake in the South Texas Project Electric Generating Station, a 2,645-megawatt, dual-unit nuclear plant. CEG’s stake represents approximately 1,100 megawatts of the plant’s output. This is expected to have boosted CEG’s overall performance in the fourth quarter.
The efficiently run organic nuclear, renewable and natural gas fleet has contributed to the strong performance of the company.
The systematic share repurchases in the first nine months of 2023 are likely to have had a positive impact on fourth-quarter earnings.
Lower operating expenses might have also contributed positively to the fourth-quarter earnings.
Q4 Expectations
The Zacks Consensus Estimate for earnings is pegged at $1.71 per share, indicating a year-over-year increase of 1,610%.
The Zacks Consensus Estimate for revenues is pinned at $7.76 billion, indicating an improvement of 5.9% year over year.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Constellation 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, which is the case here, as you will see below.
Constellation Energy Corporation Price and EPS Surprise
Constellation Energy Corporation price-eps-surprise | Constellation Energy Corporation Quote
Earnings ESP: The company’s Earnings ESP is +2.05%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Constellation Energy has a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
Other Stocks to Consider
Investors may also consider the following players from the same sector, as these too have the right combination of elements to come up with an earnings beat this reporting cycle.
Delek US Holdings (DK - Free Report) is expected to come up with an earnings beat when it announces fourth-quarter results on Feb 27, before market open. It has an Earnings ESP of +6.40% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for DK’s fourth-quarter earnings is pegged at a loss of $1.28 per share. It delivered an average earnings surprise of 34.2% in the last four quarters.
KINETIK HLDGS (KNTK - Free Report) is likely to report an earnings beat when it announces fourth-quarter results on Feb 28, after market close. It has an Earnings ESP of +0.73% and a Zacks Rank #3 at present.
KNTK’s long-term (three to five years) earnings growth rate is 18%. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 46 cents per share.
Kodiak Gas Services, Inc. (KGS - Free Report) is expected to post an earnings beat when it announces fourth-quarter results on Mar 6, after market close. It has an Earnings ESP of +20% and a Zacks Rank #3 at present.
KGS’ long-term earnings growth rate is 16.4%. It delivered an average earnings surprise of 58.3% in the last four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.