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NRG Energy (NRG) to Post Q3 Earnings: What's in the Cards?

Zacks Equity Research

NRG Energy, Inc. NRG is scheduled to release third-quarter 2019 results on Nov 7, before the opening bell. Notably, the company delivered an average positive earnings surprise of 11.64% in the last four quarters.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors at Play

The acquisition of Stream Energy and execution of nearly 1.3 gigawatts of solar power purchase agreement (PPA) generator are likely to have made a positive impact on NRG Energy’s third-quarter performance. Moreover, the company’s transformation plan, margin-enhancement initiatives, debt reduction and share buyback are expected to have contributed to savings and, in turn, have boosted third-quarter performance.

However, milder-than-normal summer is likely to have hurt the company in the third quarter.

Q3 Expectation

The Zacks Consensus Estimate for third-quarter earnings is pegged at $2.14 per share, which indicates a surge of 127.66% on a year-over-year basis.

What Our Quantitative Model Predicts

Our proven model doesn’t conclusively predict an earnings beat for NRG Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

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, NRG Energy sports a Zacks Rank #1.

NRG Energy, Inc. Price and EPS Surprise

 

NRG Energy, Inc. Price and EPS Surprise

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

 

Stocks to Consider

Investors can consider the following players from the same sector that have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Eversource Energy ES is set to release third-quarter 2019 numbers on Nov 6. It has an Earnings ESP of +1.06% and carries a Zacks Rank #2.

CenterPoint Energy, Inc CNP is scheduled to release third-quarter 2019 results on Nov 7. It has an Earnings ESP of +0.12% and a Zacks Rank #3.

The AES Corporation AES is scheduled to release third-quarter 2019 results on Nov 6. It has an Earnings ESP of +1.47% and carries a Zacks Rank #3.

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NRG Energy, Inc. (NRG) : Free Stock Analysis Report
 
The AES Corporation (AES) : Free Stock Analysis Report
 
CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report
 
Eversource Energy (ES) : Free Stock Analysis Report
 
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