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Will TECO Energy (TE) Beat on Earnings?

Zacks Equity Research

TECO Energy, Inc. (TE) will release its first-quarter 2014 financial results before the opening bell on Apr 29, 2014. In the prior quarter, earnings of this regulated utility and other services provider were in-line with the Zacks Consensus Estimate. TECO Energy currently has a Zacks Rank #3 (Hold). Let’s see how things are shaping up for this announcement.

Factors to Consider This Quarter

TECO Energy continues to increase its customer base, primarily backed by gradual improvement in economy at the state of Florida. This trend is expected to prevail in the future mainly due to the decline in unemployment rate and housing market recovery. These factors will aid TECO Energy to add new customers to its portfolio, thereby improving future performance.

The World Steel Association projects a 3.1% rise in global steel consumption in 2014. This will create fresh demand for metallurgical (met) coal, and TECO Energy will benefit from the revival of met coal demand through its subsidiary, TECO Coal.

On the flip side, TECO Energy’s operations are subject to the federal, state and local regulations associated with air, water and other environmental issues. Any changes in guidelines could impact the company’s financial performance.

Earnings Whispers

Our proven model does not conclusively show that TECO Energy is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP (Expected Surprise Prediction) and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here.

Zacks ESP: This is because the Most Accurate estimate and the Zacks Consensus Estimate stand at 22 cents, resulting in an ESP of 0.00%.

Zacks Rank #3 (Hold): TECO Energy’s Zacks Rank #3 (Hold) when combined with a 0.00% ESP makes surprise prediction difficult. The company registered 0.00% earnings surprise in the last quarter.

Other Stocks to Consider

Here are some other utility companies worth considering as our model shows they have the right combination of elements to post an earnings beat this quarter.

Ameren Corp. (AEE) has an earnings ESP of +6.25% and carries a Zacks Rank #2 (Buy).

Exelon Corp. (EXC) has an earnings ESP of +6.94% and carries a Zacks Rank #2 (Buy).

PPL Corp. (PPL) has an earnings ESP of +4.41% and carries a Zacks Rank #2 (Buy).

Read the Full Research Report on TE
Read the Full Research Report on AEE
Read the Full Research Report on EXC
Read the Full Research Report on PPL

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