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NRG Energy (NRG) to Post Q4 Earnings: Is a Beat in Store?

Zacks Equity Research

NRG Energy, Inc. NRG is scheduled to release fourth-quarter 2019 results on Feb 27, before the opening bell. The company has trailing four-quarter positive earnings surprise of 12.62%, on average.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

Higher amount of cash flow driven by receivables, related to third-quarter retail EBITDA was realized during the fourth quarter. This is likely to have boosted the company’s fourth-quarter performance.

The company’s steady transformation plan, margin-enhancement related to full contribution from the Stream acquisition, debt reduction and share buyback initiatives are expected to have contributed to fourth-quarter earnings.

Warmer-than-normal weather in October is likely to have boosted the company’s fourth-quarter performance.

NRG Energy, Inc. Price and EPS Surprise

 

NRG Energy, Inc. Price and EPS Surprise

NRG Energy, Inc. price-eps-surprise | NRG Energy, Inc. Quote

 

Q4 Expectations

The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at $1.37 per share, which calls for year-over-year surge of 953.85%.

Quantitative Model Predicts

Our proven model predicts an earnings beat for NRG 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 chances of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: The company’s Earnings ESP is +7.04%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, NRG Energy carries a Zacks Rank #3.

Other Stocks to Consider

Investors can consider other players from the same sector that have the right combination of elements to post an earnings beat in the to-be-reported quarter.

NiSource, Inc NI is set to release fourth-quarter 2019 numbers on Feb 26. It has an Earnings ESP of +2.38% and carries a Zacks Rank #3.

Public Service Enterprise Group Incorporated PEG is scheduled to release fourth-quarter 2019 results on Feb 26. It has an Earnings ESP of +2.01% and a Zacks Rank #3.

The AES Corporation AES is set to release fourth-quarter 2019 numbers on Feb 28. It has an Earnings ESP of +3.82% and carries a Zacks Rank #3.

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