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What Awaits Algonquin Power & Utilities (AQN) in Q1 Earnings? (Revised)

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Algonquin Power & Utilities Corp. (AQN - Free Report) is slated to release first-quarter 2020 financial results on May 7. The utility delivered a positive earnings surprise of 11.1% in the last reported quarter.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

The two utility acquisitions completed by the company in the fourth quarter are expected to have contributed to first-quarter earnings. In addition, successful rate review outcomes in the last reported quarter are likely to have boosted earnings in the to-be-reported quarter.

Demand from commercial and industrial customers is expected to have declined in the first quarter due to the novel coronavirus outbreak. However, the stay-at-home directives are expected to have resulted in higher demand from the residential class, which is likely to have marginally offset the decline in demand from the industrial and commercial space in the first quarter.

Q1 Expectation

The Zacks Consensus Estimate for first-quarter revenues and earnings per share is pegged at $511.6 million and 21 cents, indicating 7.2% and 10.5% growth, respectively, from the year-ago reported figures.

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for Algonquin Power & Utilities this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here as you will see below.

Earnings ESP: Its Earnings ESP is +1.59%.

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

Zacks Rank:  Algonquin Power & Utilities currently carries a Zacks Rank #2.

Other Stocks to Consider

Here are a few other companies worth considering from the same sector that also have the right combination of elements to beat on earnings in the upcoming releases.

Consolidated Edison, Inc. (ED - Free Report) is set to release first-quarter 2020 numbers on May 7. It has an Earnings ESP of +0.52% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

New Jersey Resources (NJR - Free Report) is scheduled to release second-quarter fiscal 2020 results on May 8. It has an Earnings ESP of +3.86% and a Zacks Rank #3.

Spire Inc. (SR - Free Report) is scheduled to release second-quarter fiscal 2020 results on May 8. It has an Earnings ESP of +0.17% and a Zacks Rank #3.
 

(We are reissuing this article to correct a mistake. The original article, issued on May 5, 2020, should no longer be relied upon.)

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