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Chesapeake Utilities (CPK) Q2 Earnings: What's in Store?

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Chesapeake Utilities Corporation (CPK - Free Report) is set to report second-quarter 2018 results on Aug 9, before the market opens. Last reported quarter, the company delivered a positive earnings surprise of 4.48%, the average trailing-four quarter beat being 0.29%.

Let’s see how things are shaping up prior to the announcement.

Factors to Consider

Chesapeake Utilities expects strong growth in the margin on the back of capital investments worth $947.9 million during the 2013-2018 period.

The Eastern Shore and Florida project expansion coupled with Eastern Shore rate case and from the other projects the company anticipates strong 2018 margin growth compared with last year’s results.

The Zacks Consensus Estimate for total revenues in the to-be-reported quarter is pegged at $141 million, reflecting an increase of 12.8% year over year. The consensus mark for earnings in the same period stands at 50 cents per share, representing a 35.1% surge from the year-ago period’s estimate.

Chesapeake Utilities Corporation Price and EPS Surprise

Earnings Whispers

Our proven model does not conclusively predict earnings beat for Chesapeake Utilities in the quarter to be reported. This is because a stock needs to have both a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.

Earnings ESP:  Chesapeake Utilities has an Earnings ESP of 0.00%, representing the difference between the Most Accurate Estimate and the Zacks Consensus Estimate.  You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Chesapeake Utilities carries a Zacks Rank #3, which increases the predictive power of ESP. However, a 0.00% ESP makes surprise prediction difficult and uncertain. You can see the complete list of today’s Zacks #1 Rank stocks here.

We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Upcoming Utility Sector Releases

Additionally, investors can consider stocks from the same sector comprising the right combination of elements to beat on earnings this time around.

OGE Energy Corporation (OGE - Free Report) has an Earnings ESP of +4.39% and a Zacks Rank of 3. The company is expected to report second-quarter 2018 results on Aug 9.

Pattern Energy Group Inc. (PEGI - Free Report) is expected to release second-quarter 2018 results on Aug 9. The company has an Earnings ESP of +66.66% and is a Zacks #3 Ranked player.

Recent Release

Ameren Corporation (AEE - Free Report) reported second-quarter 2018 earnings of 62 cents per share, which surpassed the Zacks Consensus Estimate of 58 cents by 6.90%. The company carries a Zacks Rank #2 (Buy).

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