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Is a Beat in Store for NextEra Energy's (NEE) Q1 Earnings?

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NextEra Energy, Inc. (NEE - Free Report) is likely to beat earnings estimates when it reports first-quarter 2019 results on Apr 23, before the opening bell. This utility delivered a negative earnings surprise of 1.32% in the last reported quarter.

Nonetheless, the company delivered average positive earnings surprise of 2.52% in the last four quarters.

Why a Likely Positive Surprise?

Our proven model shows that NextEra Energy is likely to beat on earnings in the to-be-reported quarter because it has the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can see the complete list of today’s Zacks #1 Rank stocks here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The company has an Earnings ESP of +1.95% as the Most Accurate Estimate is pegged at $1.99, higher than the Zacks Consensus Estimate of $1.95 per share.

Zacks Rank: NextEra Energy currently carries a Zacks Rank #3. The combination of NextEra Energy’s Zacks Rank #3 and +1.95% ESP makes us quite confident of an earnings beat in the quarter to be reported.

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

NextEra Energy, Inc. Price and EPS Surprise

Factors at Play

NextEra Energy’s first-quarter earnings are expected to get a boost from strong Florida economy. Consistent expansion of its customer base is likely to have a positive impact on demand and the upcoming results. The addition of Gulf Power will further boost performance of the company.

Addition of renewable sources and contribution from natural gas pipelines will also have a positive impact on the company’s quarterly performance.  NextEra Energy’s high-quality services and low utility bills continue to attract more customers and in turn drive performance.

The Zacks Consensus Estimate for first-quarter earnings of $1.95 per share and total revenues of $4,109 million indicate an improvement of 0.5% and 6.4%, respectively, from the year-ago reported figures. The year-over-year improvement can be attributed to the company’s renewable focus and ongoing expansion of the customer base.

Other Stocks to Consider

In addition to NextEra Energy, investors can also consider the following players from the same industry that have the right combination of elements to post an earnings beat in the to-be-reported quarter.

American Electric Power Company (AEP - Free Report) is anticipated to release first-quarter 2019 results on Apr 25. It has an Earnings ESP of +5.81% and a Zacks Rank #3.

Alliant Energy Corporation (LNT - Free Report) is expected to release first-quarter 2019 numbers on May 2. It has an Earnings ESP of +0.92% and carries a Zacks Rank #2.

Dominion Energy (D - Free Report) is anticipated to release first-quarter 2019 results on May 3. It has an Earnings ESP of +0.78% and a Zacks Rank #3.

Zacks' Top 10 Stocks for 2019

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