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What's in the Cards for NRG Energy's (NRG) Q1 Earnings?

Zacks Equity Research

NRG Energy, Inc. NRG is scheduled to release first-quarter 2020 results on May 7, before the opening bell. The company recorded negative earnings surprise of 5.26% in the last reported quarter.

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

Factors to Consider

NRG Energy provides energy and related services to residential, industrial and commercial customers. Due to the coronavirus outbreak most people are staying back at home. The company’s first-quarter results are likely to reflect benefits from higher residential demand.

Under the transformation plan, the company expects to achieve $80 million of additional margin enhancement in 2020. This is likely to have boosted the company’s first-quarter performance as well.

NRG Energy, Inc. Price and EPS Surprise


NRG Energy, Inc. Price and EPS Surprise

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


Q1 Expectations

The Zacks Consensus Estimate for first-quarter earnings per share is pegged at 75 cents, which calls for year-over-year increase of 120.59%.

What Our Quantitative Model Predicts

Our proven model doesn’t conclusively predict 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. That is not the case here as you will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: The company’s Earnings ESP is 0.00%. 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.

Stocks to Consider

Investors can consider the following players from the same sector that have the right combination of elements to post an earnings beat this time around.

Spire Inc. SR is set to release first-quarter 2020 numbers on May 8. It has an Earnings ESP of +0.17% and carries a Zacks Rank #3.

Algonquin Power & Utilities Corp. AQN is scheduled to release first-quarter 2020 results on May 7. It has an Earnings ESP of +1.59% and a Zacks Rank #2.

Consolidated Edison Inc ED is scheduled to release first-quarter 2020 results on May 7. It has an Earnings ESP of +0.52% and a Zacks Rank #3.

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