Algonquin Power & Utilities Corp. AQN is set to release first-quarter 2019 results on May 9, after market close.
In the trailing four quarters, the company delivered an average positive earnings surprise of 22.48%.
Let’s see how things are shaping up at the company prior to this announcement.
Factors in Play
Algonquin Power focuses on expanding global business operations and renewable operations.For 2019, the company plans to invest $1.4-$1.6 billion in both the business groups. We believe strategic acquisitions and investments toward organic growth to boost revenues and margin in the quarter to be reported.
The Zacks Consensus Estimate for total revenues in the first quarter is pegged at $498.08 million, indicating growth of 0.65% from the year-ago quarter number. The consensus mark for earnings stands at 22 cents per share, implying a decline of 31.25% from the prior-quarter’s reported figure.
Algonquin Power & Utilities Corp. Price and EPS Surprise
Algonquin Power & Utilities Corp. Price and EPS Surprise | Algonquin Power & Utilities Corp. Quote
Our proven model does not show that Algonquin Power is likely to beat estimates in first-quarter 2019. This is because a stock needs to have a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.
Earnings ESP: Algonquin Power has an Earnings ESP of -4.02%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Algonquin Power has a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s negative ESP makes surprise prediction incomplete. You can see the complete list of today’s Zacks #1 Rank stocks here.
Meanwhile, we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Investors can consider Pattern Energy Group Inc. PEGI from the Zacks Utilities sector as the stock has the right combination of elements to beat on earnings this time around.
Pattern Energy is anticipated to release first-quarter 2019 results on May 10. It has an Earnings ESP of +18.64% and a Zacks Rank #3.
DTE Energy Company DTE delivered first-quarter 2019 operating earnings of $2.05 per share, which outpaced the Zacks Consensus Estimate of $1.95 by 5.1%.
NextEra Energy, Inc NEE reported first-quarter 2019 adjusted earnings of $2.20 per share, which surpassed the Zacks Consensus Estimate of $2.01 by 9.4%.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
See the 7 breakthrough stocks now>>
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
Pattern Energy Group Inc. (PEGI) : Free Stock Analysis Report
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
DTE Energy Company (DTE) : Free Stock Analysis Report
Algonquin Power & Utilities Corp. (AQN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research