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NRG Energy (NRG) to Report Q4 Earnings: What's in Store?

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NRG Energy, Inc. (NRG - Free Report) is scheduled to release fourth-quarter 2023 results on Feb 28, before market open. The company delivered an earnings surprise of 5.88% in the last reported quarter.

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

Factors to Consider

During the fourth quarter, earnings are expected to have benefited from Vivant Smart Home integration and contribution from combined growth initiatives.

NRG Energy’s debt reduction initiatives have lowered capital financing expenses and are likely to have boosted its bottom line. NRG is also expected to have gained from the ongoing share repurchases that might have reduced its outstanding shares and improved earnings. The company completed the sale of its Interest in South Texas Project during the fourth quarter, which provided additional funds to repay debts and buyback shares.

Expectations

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 94 cents per share, indicating a decline of 42.7% from the year-ago levels.

The Zacks Consensus Estimate for fourth-quarter revenues is pinned at $7.76 billion, implying a decrease of 1.2% from the prior-year actuals.

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: NRG Energy’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, NRG Energy carries a Zacks Rank #4 (Sell).

Stocks to Consider

Investors may consider the following players from the same sector that have the right combination of elements to come up with an earnings beat this reporting cycle.

American Electric Power Company, Inc.’s (AEP - Free Report) is likely to report an earnings beat when it announces fourth-quarter results on Feb 27. It has an Earnings ESP of +2.36% and a Zacks Rank #3 at present. You can see the complete list of today's Zacks #1 Rank stocks here.

AEP’s long-term (three-to-five year) earnings growth rate is 5.11%. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $1.27 per share, remaining unchanged in past 60 days.

Sempra Energy (SRE - Free Report) is expected to come up with an earnings beat when it reports fourth-quarter results on Feb 27. It has an Earnings ESP of +0.29% and a Zacks Rank #3 at present.

SRE’s long-term earnings growth rate is 4.95%. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $1.13 per share, increasing 1.8% in the past 60 days.

Consolidated Water (CWCO - Free Report) is likely to come up with an earnings beat when it reports fourth-quarter results. It has an Earnings ESP of +2.00% and a Zacks Rank #2 at present.

CWCO’s long-term earnings growth rate is 8%. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at 45 cents per share, increasing 2.3% in the past 60 days.

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

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