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Will NextEra Energy Partners (NEP) Post a Beat in Q1 Earnings?

Zacks Equity Research

NextEra Energy Partners, LP NEP is set to release first-quarter 2019 on Apr 23, before market opens. In the last four quarters, the company delivered average positive earnings surprise of 60.91 %.

What Does the Zacks Model Say?

Our proven model shows that NextEra Energy Partners is likely to beat estimates as it has the right combination of two key ingredients. A stock needs to have 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.

NextEra Energy Partners, LP Price and EPS Surprise

 

NextEra Energy Partners, LP Price and EPS Surprise | NextEra Energy Partners, LP Quote

 

Earnings ESP: The company has Earnings ESP of +18.03%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: NextEra Energy Partners currently carries a Zacks Rank #3. The company’s favorable Zacks Rank along with +18.03% ESP makes us confident of an earnings beat in the upcoming quarterly results.

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

Thesale of Canadian portfolio and acquisition of 1.4-gigawatt renewable portfolio from Energy Resources in 2018 is expected to positively impact the partnership’s first-quarter results. NextEra Energy Partners is well positioned to execute its growth objectives and expects to deliver strong performance in the upcoming quarterly results.

The Zacks Consensus Estimate for first-quarter 2019 sales is pegged at $316.31 million, implying an increase of 49.20% from the year-ago reported figure. However, the Zacks Consensus Estimate for first-quarter 2019 earnings per unit is pegged at 47 cents, which suggests a decline of 61.16% from the year-ago reported figure.

Other Stocks to Consider

Investors can also consider the other stocks from the sector, which also have the right combination of elements to beat estimates in the to-be-reported quarter.

Devon Energy Corporation DVN has an Earnings ESP of +14.49% and a Zacks Rank #2. The company is expected to release first-quarter 2019 results on Apr 30.

CNX Resources Corporation CNX has an Earnings ESP of +17.89% and a Zacks Rank #3. The company is expected to report first-quarter 2019 results on Apr 30.

Alliance Resource Partners, L.P. ARLP has an Earnings ESP of +2.90% and carries a Zacks Rank #3. The company is expected to report first-quarter 2019 results on Apr 29.

Zacks' Top 10 Stocks for 2019

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Alliance Resource Partners, L.P. (ARLP) : Free Stock Analysis Report
 
CNX Resources Corporation. (CNX) : Free Stock Analysis Report
 
Devon Energy Corporation (DVN) : Free Stock Analysis Report
 
NextEra Energy Partners, LP (NEP) : Free Stock Analysis Report
 
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