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Algonquin Power (AQN) to Post Q1 Earnings: What's in Store?

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Algonquin Power & Utilities Corp. (AQN - Free Report) is set to release first-quarter 2019 results on May 9, after market close.

In the trailing four quarters, the company delivered an average positive earnings surprise of 22.48%.

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

Factors in Play

Algonquin Power focuses on expanding global business operations and renewable operations.For 2019, the company plans to invest $1.4-$1.6 billion in both the business groups. We believe strategic acquisitions and investments toward organic growth to boost revenues and margin in the quarter to be reported.

The Zacks Consensus Estimate for total revenues in the first quarter is pegged at $498.08 million, indicating growth of 0.65% from the year-ago quarter number. The consensus mark for earnings stands at 22 cents per share, implying a decline of 31.25% from the prior-quarter’s reported figure.

Earnings Whispers

Our proven model does not show that Algonquin Power is likely to beat estimates in first-quarter 2019. This is because a stock needs to have 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: Algonquin Power has an Earnings ESP of -4.02%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Algonquin Power has a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s negative ESP makes surprise prediction incomplete. You can see the complete list of today’s Zacks #1 Rank stocks here.

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

Stocks to Consider

Investors can consider Pattern Energy Group Inc. (PEGI - Free Report) from the Zacks Utilities sector as the stock has the right combination of elements to beat on earnings this time around.

Pattern Energy is anticipated to release first-quarter 2019 results on May 10. It has an Earnings ESP of +18.64% and a Zacks Rank #3.

Recent Releases

DTE Energy Company (DTE - Free Report) delivered first-quarter 2019 operating earnings of $2.05 per share, which outpaced the Zacks Consensus Estimate of $1.95 by 5.1%.

NextEra Energy, Inc (NEE - Free Report) reported first-quarter 2019 adjusted earnings of $2.20 per share, which surpassed the Zacks Consensus Estimate of $2.01 by 9.4%.

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