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What's in Store for NextEra Energy Partners (NEP) in Q2 Earnings?
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NextEra Energy Partners, LP (NEP - Free Report) is scheduled to release second-quarter 2023 results on Jul 25, before market open. The firm delivered a negative earnings surprise of 154.84% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Note
NextEra Energy Partners’ second-quarter earnings are expected to have benefited from ongoing growth of its high-quality renewable energy portfolio. The firm had nearly 18 gigawatts (GW) renewables in backlog in the to-be-reported quarter. NEP is expected to further boost its generation portfolio by closing an acquisition worth 690 megawatts from Energy Resources.
The Zacks Consensus Estimate for second-quarter operating revenues for the Renewable segment is pegged at $334.2 million, indicating growth of 10.7% from the year-ago quarter’s reported figure.
The consensus estimate for Texas Pipelines’ operating revenues is pinned at $57.1 million, indicating a year-over-year decline of 4.8%.
The company continues to enjoy structural tax advantages and is not likely to pay meaningful U.S. taxes for at least 15 years. This might have also bolstered its second-quarter earnings.
Q2 Expectations
The Zacks Consensus Estimate for NextEra Energy Partners’ earnings is pegged at 72 cents per unit, implying a year-over-year decrease of 72.4%.
The consensus mark for revenues is pinned at $392.92 million, indicating an 8.6% increase year over year.
Our Zacks model predicts renewable energy sales to contribute 85.1% to the company’s total revenues compared with 83.4% in the year-ago quarter.
Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for NextEra Energy Partners this time around. The combination of a positive Earnings ESP 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.
NextEra Energy Partners, LP Price and EPS Surprise
Here are a few players from the same sector that have the right combination of elements to come up with an earnings beat this reporting cycle.
TC Energy Corporation (TRP - Free Report) is likely to report an earnings beat when it announces second-quarter results on Jul 28, before market open. It has an Earnings ESP of +14.72% and a Zacks Rank #2 at present.
TRP’s long-term (three to five years) earnings growth rate is 4%. It delivered an average earnings surprise of 2.1% in the last four quarters.
Plains All American Pipeline (PAA - Free Report) is expected to post an earnings beat when it announces second-quarter results on Aug 4, before market open. It has an Earnings ESP of +34.62% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for PAA’s earnings is pegged at 21 cents per unit. It delivered an average earnings surprise of 11.5% in the last four quarters.
Cactus, Inc. (WHD - Free Report) is expected to come up with an earnings beat when it reports second-quarter results on Aug 7, after market close. It has an Earnings ESP of +4.41% and a Zacks Rank #3 at present.
WHD’s long-term earnings growth rate is 5.79%. It delivered an average earnings surprise of 13.6% in the last four quarters.
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What's in Store for NextEra Energy Partners (NEP) in Q2 Earnings?
NextEra Energy Partners, LP (NEP - Free Report) is scheduled to release second-quarter 2023 results on Jul 25, before market open. The firm delivered a negative earnings surprise of 154.84% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Note
NextEra Energy Partners’ second-quarter earnings are expected to have benefited from ongoing growth of its high-quality renewable energy portfolio. The firm had nearly 18 gigawatts (GW) renewables in backlog in the to-be-reported quarter. NEP is expected to further boost its generation portfolio by closing an acquisition worth 690 megawatts from Energy Resources.
The Zacks Consensus Estimate for second-quarter operating revenues for the Renewable segment is pegged at $334.2 million, indicating growth of 10.7% from the year-ago quarter’s reported figure.
The consensus estimate for Texas Pipelines’ operating revenues is pinned at $57.1 million, indicating a year-over-year decline of 4.8%.
The company continues to enjoy structural tax advantages and is not likely to pay meaningful U.S. taxes for at least 15 years. This might have also bolstered its second-quarter earnings.
Q2 Expectations
The Zacks Consensus Estimate for NextEra Energy Partners’ earnings is pegged at 72 cents per unit, implying a year-over-year decrease of 72.4%.
The consensus mark for revenues is pinned at $392.92 million, indicating an 8.6% increase year over year.
Our Zacks model predicts renewable energy sales to contribute 85.1% to the company’s total revenues compared with 83.4% in the year-ago quarter.
Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for NextEra Energy Partners this time around. The combination of a positive Earnings ESP 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.
NextEra Energy Partners, LP Price and EPS Surprise
NextEra Energy Partners, LP price-eps-surprise | NextEra Energy Partners, LP Quote
Earnings ESP: NEP’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, the company carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few players from the same sector that have the right combination of elements to come up with an earnings beat this reporting cycle.
TC Energy Corporation (TRP - Free Report) is likely to report an earnings beat when it announces second-quarter results on Jul 28, before market open. It has an Earnings ESP of +14.72% and a Zacks Rank #2 at present.
TRP’s long-term (three to five years) earnings growth rate is 4%. It delivered an average earnings surprise of 2.1% in the last four quarters.
Plains All American Pipeline (PAA - Free Report) is expected to post an earnings beat when it announces second-quarter results on Aug 4, before market open. It has an Earnings ESP of +34.62% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for PAA’s earnings is pegged at 21 cents per unit. It delivered an average earnings surprise of 11.5% in the last four quarters.
Cactus, Inc. (WHD - Free Report) is expected to come up with an earnings beat when it reports second-quarter results on Aug 7, after market close. It has an Earnings ESP of +4.41% and a Zacks Rank #3 at present.
WHD’s long-term earnings growth rate is 5.79%. It delivered an average earnings surprise of 13.6% in the last four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.