NextEra Energy, Inc. (NEE) is poised to unleash its fourth-quarter 2023 results on Jan 25, before the market opens. Over the last four reported quarters, the utility recorded an average earnings surprise of 7.33%. Now, let’s delve into the factors that are likely to impact the upcoming quarterly results.
Factors to Watch
The last quarter is likely to have seen NextEra Energy reaping the benefits of robust demand stemming from its expanding customer base in Florida. The anticipated surge in the top line is expected to owe much to this development. The consistent implementation of its capital plan by Florida Power Light is also expected to have a positive bearing on its fourth-quarter earnings. Moreover, NextEra Energy’s elaborate renewable energy business at Energy Resources is expected to have contributed to an enhanced bottom line.
Expectations
Analysts project fourth-quarter earnings and revenues to be around 49 cents per share and $6.15 billion, respectively. This forecast suggests a marginal year-over-year decline of 0.2% and 3.9% in revenues and earnings per share, respectively.
Quantitative Model Prediction
Our proven model signals a potential earnings beat for NextEra this time. To outperform estimates, a stock must exhibit both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold). This criteria is met by NextEra Energy, as detailed below.
NextEra Energy, Inc. Price and EPS Surprise
NextEra
Energy, Inc. price-eps-surprise | NextEra Energy, Inc. Quote
Earnings ESP: The company’s Earnings ESP stands at +4.79%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, NextEra holds a Zacks Rank #3.
Other Stocks to Consider
Investors may also consider other players from the same industry that possess the right mix of elements to beat on earnings this reporting cycle.
IDACORP (IDA) is expected to exceed earnings estimates when it reports its fourth-quarter earnings, with an Earnings ESP of +2.52% and a Zacks Rank #2. IDA boasts a 4.11% long-term earnings growth rate and delivered an average earnings surprise of 13.3% over the last four quarters.
NiSource (NI) is likely to beat earnings estimates in its upcoming fourth-quarter report, given its Earnings ESP of +1.92% and Zacks Rank #2. NI holds a long-term earnings growth rate of 7.15% and has recorded an average earnings surprise of 5.6% over the last four quarters.
CMS Energy (CMS) is also anticipated to achieve an earnings beat in its fourth-quarter 2023 results. It has an Earnings ESP of +0.77% and a Zacks Rank #3. CMS exhibits a 7.5% long-term earnings growth rate and an average earnings surprise of 2.9% over the last four quarters.
Stay informed about upcoming earnings announcements with the Zacks Earnings Calendar.
