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Chesapeake Utilities (CPK) to Post Q1 Earnings: What's Up?

Zacks Equity Research

Chesapeake Utilities Corporation CPK is set to report first-quarter 2019 results on May 8 before the opening bell. In the last reported quarter, the company witnessed a negative earnings surprise of 9.84%.

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

Factors to Consider

Chesapeake Utilities will gain from the organic projects that started operations in 2018. These projects will have a positive impact on the company’s margin in 2019. In addition, the Ohl Propane and Marlin Gas Services acquisition, completed in 2018, will provide a boost to margins in the first quarter.

Over the last several years, the company’s investments propelled growth in the business. In 2019, Chesapeake Utilities plans to invest nearly $168.2 million and expects to see similar growth. We believe these investments will boost results in the quarter to be reported.

The Zacks Consensus Estimate for total revenues in the first quarter is pegged at $271.1 million, indicating an improvement 13.26% from the year-ago quarter number. For quarterly earnings, the consensus mark is pegged at $1.60 per share, suggesting a 14.29% rise from the year-ago reported figure.

Chesapeake Utilities Corporation Price and EPS Surprise

Chesapeake Utilities Corporation Price and EPS Surprise | Chesapeake Utilities Corporation Quote

Earnings Whispers

Our proven model does not conclusively predict a positive earnings surprise for Chesapeake Utilities in the quarter to be reported. 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. 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.

Earnings ESP: Chesapeake Utilities has an Earnings ESP of 0.00% as the Most Accurate Estimate matches the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3, which when combined with a 0.00% ESP make surprise prediction difficult and uncertain.
 
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 the following stocks from the Zacks Utilities sector that have the right combination of elements to beat on earnings this time around.

PNM Resources PNM is expected to release first-quarter 2019 results on May 7. It has an Earnings ESP of +3.45% and a Zacks Rank #2.

TerraForm Power, Inc. TERP is anticipated to release first-quarter 2019 results on May 7. It has an Earnings ESP of +100.00% and a Zacks Rank #2.

Pattern Energy Group Inc. PEGI is anticipated to release first-quarter 2019 results on May 10. It has an Earnings ESP of +18.64% and a Zacks Rank #3

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Pattern Energy Group Inc. (PEGI) : Free Stock Analysis Report
 
PNM Resources, Inc. (Holding Co.) (PNM) : Free Stock Analysis Report
 
TerraForm Power, Inc. (TERP) : Free Stock Analysis Report
 
Chesapeake Utilities Corporation (CPK) : Free Stock Analysis Report
 
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