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What's in Store for NextEra Energy Partners (NEP) Q3 Earnings?

Zacks Equity Research

NextEra Energy Partners, LP NEP is scheduled to release third-quarter 2019 earnings on Oct 22, 2019, before market open. The partnership recorded a negative earnings surprise of 202.08% in the last reported quarter.

In the last four quarters, the company reported an average negative earnings surprise of 131.47 %.

Factors to Consider

The acquisition of approximately 600-megawatts of wind and solar projects, completed in the second quarter, has likely benefited the company in the third quarter.

Back-to-back rate cuts in the third quarter are expected to have provided the partnership with access to low-cost financing. In addition, financing flexibility and favorable tax positioning are have driven to the company’s performance in the third quarter.

Which Way are Estimates Treading?

The Zacks Consensus Estimate for third-quarter 2019 earnings and revenues is pegged at 62 cents per share and $354.51 million, respectively. The top- and the bottom-line figures indicate year-over-year improvement of 99.16% and 6.90% from the year-ago quarter’s tally, respectively.
 

NextEra Energy Partners, LP Price and EPS Surprise

 

NextEra Energy Partners, LP Price and EPS Surprise

NextEra Energy Partners, LP price-eps-surprise | NextEra Energy Partners, LP Quote

 

What Our Quantitative Model Predicts

Our proven model doesn’t conclusively predict an earnings beat for NextEra Energy Partners this time around. The combination of 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) increases the odds of an earnings beat. That is not the case here as you will see below.

Earnings ESP: The company’s Earnings ESP is -6.95%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Stocks to Consider

Here are some companies from the sector that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season.

Evergy Inc EVRG has an Earnings ESP of +2.55% and carries a Zacks Rank #3. The company is expected to report third-quarter 2019 results on Nov 6. You can see the complete list of today’s Zacks #1 Rank stocks here.

Plains All American Pipeline, L.P. PAA has an Earnings ESP of +10.13% and a Zacks Rank #3. The company is expected to release third-quarter 2019 results on Nov 5.

HollyFrontier Corporation HFC has an Earnings ESP of +2.53% and a Zacks Rank #3. The company is expected to report third-quarter 2019 results on Oct 31.

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Plains All American Pipeline, L.P. (PAA) : Free Stock Analysis Report
 
HollyFrontier Corporation (HFC) : Free Stock Analysis Report
 
NextEra Energy Partners, LP (NEP) : Free Stock Analysis Report
 
Evergy Inc. (EVRG) : Free Stock Analysis Report
 
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