Xcel EnergyInc. (NYSE:XEL) will release second-quarter 2016 financial results before the market opens on Aug 3. Last quarter, this electric and natural gas utility’s earnings recorded a positive earnings surprise of 2.17%.
Let’s see how things are shaping up at the company prior to this announcement.
Factors to Consider
The company expects more load to come in and electricity sales to improve in the second half of 2016, implying that second-quarter electricity sales will be almost on par with first-quarter sales and lower than the second half.
However, above-average temperatures in its service territories in the second quarter, along with improving economic fundamentals, are expected drive top-line growth.
Earnings Whispers
Our proven model does not conclusively show that Xcel Energy is likely to beat earnings estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. This is not the case here, as you will see below.
Zacks ESP: The company has an Earnings ESP of -2.44% because the Most Accurate estimate stands at 40 cents while the Zacks Consensus Estimate is pegged at 41 cents.
XCEL ENERGY INC Price and EPS Surprise
XCEL ENERGY INC Price and EPS Surprise | XCEL ENERGY INC Quote
Zacks Rank: Xcel Energy has a Zacks Rank #4.As it is, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few stocks in the utility space worth considering on the basis of our model, as they have the right combination of elements to post an earnings beat this quarter:
Pattern Energy Group Inc. (NASDAQ:PEGI) has an Earnings ESP of +100.00% and a Zacks Rank #3. It is expected to report earnings on Aug 8.
Avista Corp. (NYSE:AVA) has an Earnings ESP of +2.33% and a Zacks Rank #2.It is slated to report earnings on Aug 3.
The AES Corp. (NYSE:AES) has an Earnings ESP of +11.11% and a Zacks Rank #3.It is slated to report earnings on Aug 5.
XCEL ENERGY INC (XEL): Free Stock Analysis Report
AES CORP (AES): Free Stock Analysis Report
AVISTA CORP (AVA): Free Stock Analysis Report
PATTERN ENERGY (PEGI): Free Stock Analysis Report
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