NRG Energy, Inc. (NRG - Free Report) is scheduled to release third-quarter 2019 results on Nov 7, before the opening bell. Notably, the company delivered an average positive earnings surprise of 11.64% in the last four quarters.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors at Play
The acquisition of Stream Energy and execution of nearly 1.3 gigawatts of solar power purchase agreement (PPA) generator are likely to have made a positive impact on NRG Energy’s third-quarter performance. Moreover, the company’s transformation plan, margin-enhancement initiatives, debt reduction and share buyback are expected to have contributed to savings and, in turn, have boosted third-quarter performance.
However, milder-than-normal summer is likely to have hurt the company in the third quarter.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $2.14 per share, which indicates a surge of 127.66% on a year-over-year basis.
What Our Quantitative Model Predicts
Our proven model doesn’t conclusively predict an earnings beat for NRG 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 chances of an earnings beat. That is not the case here. You can see the complete list of today’s Zacks #1 Rank 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: Currently, NRG Energy sports a Zacks Rank #1.