Back to top

Image: Bigstock

Xcel Energy to Report Q4 Earnings: What's in Store for the Stock?

Read MoreHide Full Article

Key Takeaways

  • Xcel Energy will report Q4 2025 results Feb. 5, with consensus EPS at 97 cents, up 19.75% year over year.
  • XEL's earnings likely benefited from customer growth, new service centers, and regulatory outcomes.
  • Xcel Energy faces rising O&M costs, taxes and interest that may offset gains, despite Q4 revenue up 19.44%.

Xcel Energy (XEL - Free Report) is set to report fourth-quarter 2025 results on Feb. 5, before market open. The company reported a negative earnings surprise of 5.34% in the last reported quarter.

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

Factors Likely to Have Impacted XEL’s Q4 Earnings

Xcel Energy’s fourth-quarter earnings are expected to benefit from fresh demand coming in from its expanding electric and natural gas customer base. The company has been investing in developing new service centers across Minnesota to provide efficient services to its customers, which is likely to have assisted in adding new customers and retaining existing ones.

Fourth-quarter earnings are likely to have gained from constructive outcomes in all pending proceedings, including authorization to defer incremental insurance costs related to wildfire risk and recovery of operations and maintenance costs associated with wildfire mitigation efforts.

However, the expected increase in operation and maintenance expenses is likely to have offset some of the positives in the fourth quarter. An increase in property taxes and interest expenses might further act as a headwind in the fourth-quarter performance.

Q4 Expectations for XEL

The Zacks Consensus Estimate for earnings per share is pegged at 97 cents, implying a year-over-year increase of 19.75%.

The consensus estimate for revenues is pinned at $ 3.73 billion, indicating an increase of 19.44% from the year-ago reported number.

What Our 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 and EPS Surprise

Xcel Energy Inc. price-eps-surprise | Xcel Energy Inc. Quote

XEL’s Earnings ESP: The company has an Earnings ESP of -1.37% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

XEL’s Zacks Rank: Currently, Xcel Energy carries a Zacks Rank #3.

Stocks to Consider

Investors may consider the following players from the same industry, as these have the right combination of elements to post an earnings beat this reporting cycle.

Fortis (FTS - Free Report) is likely to come up with an earnings beat when it reports fourth-quarter results on Feb. 12. It has an Earnings ESP of +0.41% and a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.

FTS’ long-term (three to five years) earnings growth rate is 4.29%. The Zacks Consensus Estimate for fourth-quarter EPS is pinned at 62 cents, which implies a year-over-year increase of 5.08%.

Pinnacle West Capital (PNW - Free Report) is likely to come up with an earnings beat when it reports fourth-quarter results on Feb. 25. It has an Earnings ESP of +250.00% and a Zacks Rank #2 at present. 

PNW’s long-term earnings growth rate is 3.56%. The Zacks Consensus Estimate for fourth-quarter EPS is pinned at 2 cents, which implies a year-over-year increase of 133.33%.

Eversource Energy (ES - Free Report) is likely to come up with an earnings beat when it reports fourth-quarter results on Feb. 13. It has an Earnings ESP of +1.27% and a Zacks Rank #3 at present. 

ES’ long-term earnings growth rate is 5.92%. The Zacks Consensus Estimate for fourth-quarter earnings per share is pinned at $1.11, which implies a year-over-year increase of 9.90%.

Published in