What's in Store for Clearway Energy (CWEN) in Q2 Earnings?
Clearway Energy, Inc. CWEN is scheduled to release second-quarter 2023 results on Aug 8, before market open. The company delivered an earnings surprise of 100% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Note
During the second quarter, Clearway Energy experienced a decline in wind production from its assets. Its wind fleet performed nearly 25% below internal median production estimates, with the Alta Wind Complex's production falling even further at around 20% below expectations. The company's second-quarter revenues are expected to have decreased $25-$30 million as a result of this historically low level of wind generation.
However, the bottom line is likely to have benefited from lower operational expenses, just like in the previous quarters.
Q2 Expectations
The Zacks Consensus Estimate for second-quarter earnings is pegged at 55 cents per share, indicating a year-over-year increase of 114.3%.
The Zacks Consensus Estimate for revenues is pinned at $368.3 million, indicating a year-over-year improvement of 0.1%.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Clearway 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 odds of an earnings beat. That is not the case here as you will see below.
Clearway Energy, Inc. Price and EPS Surprise
Clearway Energy, Inc. price-eps-surprise | Clearway Energy, Inc. Quote
Earnings ESP: The company’s Earnings ESP is -19.46%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Clearway Energy carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today's Zacks #1 Rank stocks here.
Another Stock to Consider
Investors may consider the following player as this has the right combination of elements to beat on earnings this reporting cycle.
ALLETE ALE is likely to report an earnings beat when it announces second-quarter results on Aug 8, before market open. It has an Earnings ESP of +2.56% and a Zacks Rank #3 at present.
ALE’s long-term (three to five years) earnings growth rate is 8.1%. The Zacks Consensus Estimate for earnings is pegged at 78 cents per share, indicating a year-over-year increase of 16.4%.
Other Recent Releases
NextEra Energy, Inc. NEE reported second-quarter 2023 adjusted earnings of 88 cents per share, which beat the Zacks Consensus Estimate of 83 cents by 6%.
The Zacks Consensus Estimate for NEE’s 2023 earnings is pinned at $3.11 per share, indicating year-over-year growth of 7.3%.
WEC Energy Group WEC reported second-quarter 2023 earnings of 92 cents per share, which beat the Zacks Consensus Estimate of 85 cents by 8.24%.
WEC’s long-term earnings growth rate is 5.76%. It delivered an average earnings surprise of 7% in the last four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
WEC Energy Group, Inc. (WEC) : Free Stock Analysis Report
Allete, Inc. (ALE) : Free Stock Analysis Report
Clearway Energy, Inc. (CWEN) : Free Stock Analysis Report
