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Is a Beat in the Cards for Evergy (EVRG) in Q3 Earnings?

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Evergy, Inc. EVRG is scheduled to release third-quarter 2018 results on Nov 7, after the market closes. In the last reported quarter, the utility company delivered a positive earnings surprise of 56 cents per share, in line with the Zacks Consensus Estimate.

However, the company’s bottom line missed the Zacks Consensus Estimate in three of the last four reported quarters, the average miss being 12.50%.

Let’s see how things are shaping up prior to this announcement.

Evergy Inc. Price and EPS Surprise

Evergy Inc. Price and EPS Surprise | Evergy Inc. Quote


Why a Likely Positive Surprise?

Our proven model clearly shows that Evergy is likely to beat on earnings this to-be-reported quarter. This is because a stock needs to have both a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen and Evergy has the right mix of these two elements.

Earnings ESP: Evergy has an Earnings ESP of +3.87%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Evergy currently sports a Zacks Rank #1, which increases the predictive power of ESP. Thus, the company’s top Zacks Rank combined with a solid ESP makes us significantly confident of an earnings beat this reporting cycle.

Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Factors to Consider for Q3

The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.24. Moreover, the bottom line is anticipated to grow 11.7% year over year.

Evergy’s margins are likely to get a boost from the cost-saving initiatives, undertaken by the company. The merger savings will leave a positive impact on its earnings. The constructive rate making in its service territories is also going to have a positive impact on earnings.

Stocks to Consider

Here are some players worth considering in the Zacks Oil and Energy sector, which have the right combination of elements to deliver an earnings beat this time around.

Enbridge Inc. ENB has an Earnings ESP of +5.26% and a Zacks Rank #1. It is expected to report third-quarter 2018 earnings on Nov 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Summit Midstream Partners, LP SMLP has an Earnings ESP of +64.00% and a Zacks Rank of 1. It is anticipated to report third-quarter 2018 earnings on Nov 7.

TC PipeLines, LP TCP has an Earnings ESP of +13.29% and a Zacks Rank of 1. It is expected to report third-quarter 2018 earnings on Nov 9.

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Summit Midstream Partners, LP (SMLP) : Free Stock Analysis Report
TC PipeLines, LP (TCP) : Free Stock Analysis Report
Enbridge Inc (ENB) : Free Stock Analysis Report
Evergy Inc. (EVRG) : Free Stock Analysis Report
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