What's in Store for NextEra Energy (NEE) in Q3 Earnings?

Zacks Equity Research
Updated

NextEra Energy, Inc. NEE is expected to beat earnings when it reports third-quarter 2018 results on Oct 23 before the opening bell. In the last reported quarter, this utility delivered a positive earnings surprise of 1.93%.

Why a Likely Positive Surprise?

Our proven model shows that NextEra Energy is likely to beat on earnings 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 +0.85% as the Most Accurate estimate is pegged at $2.16, higher than the Zacks Consensus Estimate of $2.15 per share.

NextEra Energy, Inc. Price and EPS Surprise

NextEra Energy, Inc. Price and EPS Surprise | NextEra Energy, Inc. Quote

Zacks Rank: NextEra Energy carries a Zacks Rank #2. The combination of NextEra Energy’s Zacks Rank #2 and +0.85% ESP makes us quite confident that the company is poised for 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.

Factors at Play

NextEra Energy’s third-quarter earnings are expected to get a boost from its subsidiary Florida Power & Light Company’s (FPL) high revenues. Additionally, the strength in Florida economy and consistent expansion in customer base is also going to have a positive impact on demand and results.

NextEra Energy’s customers will continue to enjoy the benefit of investment made by the company in restructuring its generation fleet in Florida. The company’s high quality services along with its utility bills which are lowest in the state attract more customers and in turn drive performance.

Other Stocks to Consider

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

American Electric Power Company, Inc. AEP is anticipated to release third-quarter 2018 results on Oct 25. It has an Earnings ESP of +8.12% and a Zacks Rank #1.

FirstEnergy Corporation FE is expected to release third-quarter 2018 numbers on Oct 25. It has an Earnings ESP of +0.12% and carries a Zacks Rank #2.

Eversource Energy ES is anticipated to release third-quarter 2018 results on Nov 7. It has an Earnings ESP of +1.54% and a Zacks Rank #2.

5 Medical Stocks to Buy Now

Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.

New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.

Click here to see the 5 stocks >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
FirstEnergy Corporation (FE) : Free Stock Analysis Report
 
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
 
American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report
 
Eversource Energy (ES) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.