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What's in the Cards for Xcel Energy's (XEL) Q4 Earnings?

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Xcel Energy Inc. (XEL - Free Report) is scheduled to release fourth-quarter 2019 earnings on Jan 30 2020, before market open. The company has trailing four-quarter negative earnings surprise of 4.26%, on average.

Factors to Consider

In third-quarter earnings call, the company stated that it expects a drop in operating costs in nuclear operation and lower fossil plant outage in the second half of 2019. Considering this,  benefits from lower O&M expenses are likely to get reflected in the company’s fourth-quarter results and margins.

We believe that weather-normalized natural gas sales are likely to increase owing to customer growth and make a positive impact on the company’s fourth-quarter earnings.

Xcel Energy Inc. Price and EPS Surprise

 

Xcel Energy Inc. Price and EPS Surprise

Xcel Energy Inc. price-eps-surprise | Xcel Energy Inc. Quote

 

Q4 Expectations

The Zacks Consensus Estimate for fourth-quarter 2019 sales is pegged at $3.18 billion, which indicates a rise of 10.34% from the year-ago quarter’s figure. The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at 53 cents per share, which calls for year-over-year growth of 26.19%.

What Our Quantitative Model Predicts

Our proven model doesn’t conclusively predict an earnings beat for Xcel 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 as you will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: The company’s Earnings ESP is -2.35%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Xcel Energy carries a Zacks Rank #3.

Stocks to Consider

Investors can 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 is slated to release fourth-quarter 2019 results on Feb 20. It has an Earnings ESP of +2.13% and a Zacks Rank #3.

Ameren Corporation AEE is set to release fourth-quarter 2019 numbers on Feb 26. It has an Earnings ESP of +2.73% and carries a Zacks Rank #3.

CenterPoint Energy, Inc. CNP is scheduled to release fourth-quarter 2019 results on Feb 27. It has an Earnings ESP of +1.09% and a Zacks Rank #3.

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