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What's in the Cards for NRG Energy's (NRG) Q1 Earnings?

NRG Energy, Inc. NRG is scheduled to release first-quarter 2021 results on May 6, before market open. The company delivered a negative earnings surprise of 243.24% in the last reported quarter.

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

Factors to Consider

With the vaccine rollout and economic operations returning to normalcy, the utility’s first-quarter results are likely to reflect improving demand from the Commercial and Industrial group as well as a steady uptrend in the residential space. The utility’s upcoming results are expected to benefit from the synergies of the Direct Energy acquisition, which was completed this January.

Even though the utility made various efforts to brace up for the Winter Storm Uri, the extreme temperatures caused power outages, affecting its operations in Texas and are likely to weigh on its performance.

Q1 Expectations

The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $1.64, indicating a 198.18% rise from the year-ago quarter’s reported figure.

What Our Quantitative Model Suggests

Our proven model doesn’t 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. But 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.

NRG Energy, Inc. Price and EPS Surprise

NRG Energy, Inc. price-eps-surprise | NRG Energy, Inc. Quote

Earnings ESP: NRG Energy has an Earnings ESP of -45.12%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, NRG Energy carries a Zacks Rank #4 (Sell).

Stocks to Consider

Investors can consider the following players from the same industry that have the right combination of elements to beat on earnings this reporting cycle.

Consolidated Edison Inc ED is set to release first-quarter 2021 results on May 6. It has an Earnings ESP of +0.06% and a Zacks Rank of 3, presently.

CenterPoint Energy, Inc. CNP is set to release first-quarter 2021 results on May 6. It has an Earnings ESP of +4.52% and a Zacks Rank of 3, presently.

Duke Energy Corporation DUK is set to release first-quarter 2021 results on May 10. It has an Earnings ESP of +0.16% and is currently a #3 Ranked player.

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