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NextEra (NEE) to Report Q3 Earnings: What's in the Cards?

Zacks Equity Research

NextEra Energy, Inc. NEE is scheduled to release third-quarter 2019 earnings on Oct 22, 2019, before the market opens. This utility had delivered a positive earnings surprise of 3.07% in the last reported quarter.

Notably, the company delivered average positive earnings surprise of 2.92% in the last four quarters.

Factors to Consider

NextEra’s third-quarter earnings are likely to have benefited from strong Florida economy. Expansion of the customer base is expected to have positively impacted demand and boosted the company’s performance.

During the third quarter, it completed the acquisition of Trans Bay Cable, LLC (TBC) from affiliates of Steelriver Infrastructure Fund North America. This acquisition is likely to have expanded the company’s transmission operations in California.

The conversion of corporate units into equity shares resulted in further dilution of the company’s shares outstanding. This is likely to have adversely impacted its earnings.

The Zacks Consensus Estimate for third-quarter earnings and revenues is pegged at $2.18 per share and $5,244 million, respectively. The projected revenues indicate a year-over-year improvement of 18.7%, while the estimated earnings suggest no change from the year-ago reported figure.

What Our Quantitative Model Predicts

Our proven model predicts that NextEra is unlikely to beat estimates in the to-be-reported quarter. A stock needs to have both a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. That is not the case here as you will see below.

Earnings ESP: The company’s Earnings ESP is 0.00%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, NextEra carries a Zacks Rank #3.

NextEra Energy, Inc. Price and EPS Surprise

NextEra Energy, Inc. Price and EPS Surprise

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

Stocks to Consider

Investors can 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.

American Electric Power Company AEP is slated to release third-quarter 2019 results on Oct 24. It has an Earnings ESP of +10.26% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Entergy Corporation ETR is set to release third-quarter 2019 numbers on Jul 30. It has an Earnings ESP of +2.52% and carries a Zacks Rank #3.

Vistra Energy Corporation VST is scheduled to release third-quarter 2019 results on Nov 2. It has an Earnings ESP of +11.63% and a Zacks Rank #2.

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