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NextEra (NEE) to Report Q2 Earnings: What's in the Cards?

NextEra Energy, Inc. NEE is likely to beat earnings estimates when it reports second-quarter 2019 results on Jul 24, before the opening bell. This utility delivered a positive earnings surprise of 9.45% in the last reported quarter.

Notably, the company delivered average positive earnings surprise of 2.63% in the last four quarters.

Why a Likely Positive Surprise?

Our proven model shows that NextEra is likely to beat on earnings in the to-be-reported quarter as well 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.

NextEra Energy, Inc. Price and EPS Surprise

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

Earnings ESP: The company has an Earnings ESP of +1.63% as the Most Accurate Estimate is pegged at $2.32, higher than the Zacks Consensus Estimate of $2.29 per share.

Zacks Rank: NextEra currently carries a Zacks Rank #3. The combination of a Zacks Rank #3 and +1.63% ESP makes us quite confident of 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’s second-quarter earnings are expected to get a boost from strong Florida economy. Consistent expansion of its customer base is likely to have a positive impact on demand and the upcoming results.

NextEra’s high-quality services and low utility bills have been attracting more customers. These positive aspects are expected to in turn drive performance. Expanding electric transmission lines and contribution from natural gas pipelines should also positively impact its performance.

The Zacks Consensus Estimate for second-quarter earnings of $2.29 per share and total revenues of $4,590 million indicates an improvement of 8.53% and 12.82%, respectively, from the year-ago reported figures. The year-over-year improvement can be attributed to the company’s renewable focus and ongoing expansion of the customer base.

Other Stocks to Consider

In addition to NextEra, investors can also 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.

Entergy Corporation ETR is expected to release second-quarter 2019 numbers on Jul 31. It has an Earnings ESP of +2.52% and carries a Zacks Rank #2.

The Southern Company SO is anticipated to release second-quarter 2019 results on Jul 31. It has an Earnings ESP of +1.83% and a Zacks Rank #3.

FirstEnergy Corporation FE is anticipated to release second-quarter 2019 results on Jul 23. It has an Earnings ESP of +0.82% and a Zacks Rank #3.

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