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What's in Store for NRG Energy (NRG) This Earnings Season?

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NRG Energy, Inc. (NRG - Free Report) is scheduled to report fourth-quarter 2018 results on Feb 28, before market opens. In the last reported quarter, the company reported negative earnings surprise of 16.07%

 Let’s see how things are shaping up for this earnings season.

Factors to Consider

NRG Energy is on track with its transformation plan and is expected to benefit from the initiatives undertaken through the same. The company focuses on executing cost savings, margin enhancement initiatives and reduction of outstanding debts. We expect the company to gain from share buyback programs, which will boost shareholders’ value.

The Zacks Consensus Estimate for earnings is pegged at 7 cents, which is unchanged in the past 30 days.

Earnings Whisper

Our proven model does not show that NRG Energy will beat estimates this season. This is because it does not have the right combination of two key ingredients. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings ESP: The company’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: NRG Energy has a Zacks Rank #2. The company’s favorable Zacks Rank, when combined with 0.00% ESP, lowers the possibility of an earnings beat.

Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Recent Utility Releases

Pinnacle West Capital Corporation (PNW - Free Report) delivered adjusted earnings per share of 23 cents in the fourth quarter of 2018, which beat the Zacks Consensus Estimate of 17 cents by 35.3%.

FirstEnergy Corporation (FE - Free Report)     delivered fourth-quarter 2018 operating earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 48 cents by 4.17%.

IDACORP, Inc (IDA - Free Report)     delivered fourth-quarter 2018 operating earnings of 52 cents per share, which beat the Zacks Consensus Estimate of 48 cents by 8.3%.

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