We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in Store for NextEra Energy Partners (NEP) in Q3 Earnings?
Read MoreHide Full Article
NextEra Energy Partners, LP (NEP - Free Report) is scheduled to release third-quarter 2023 results on Oct 24, before market open. The firm delivered a negative earnings surprise of 26.4% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Note
The firm’s third-quarter earnings are expected to have benefited from the ongoing growth of its high-quality renewable energy portfolio. During the second quarter, NEP completed the acquisition of a 690-megawatt (MW) portfolio of operating wind and solar projects from Energy Resources. This is expected to further drive the firm’s performance in the to-be-reported quarter.
NextEra Energy Partners’ earnings are also expected to gain from Yellow Pine Solar, a 125-MW solar generation and a 65-MW storage facility in Nevada, which started commercial operations during the to-be-reported quarter.
The firm 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 third-quarter earnings.
Q3 Expectations
The Zacks Consensus Estimate for NextEra Energy Partners’ earnings is pegged at 48 cents per unit, implying a year-over-year decline of 48.4%.
The consensus mark for revenues is pinned at $386.6 million, indicating a 28% improvement year over year.
Our Zacks model predicts renewable energy sales to contribute nearly 84% to the firm’s total revenues compared with 78.1% in the year-ago quarter.
What Our 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.
Plains All American Pipeline (PAA - Free Report) is expected to post an earnings beat when it announces third-quarter results on Nov 3, before market open. It has an Earnings ESP of +54.84% and a Zacks Rank #2 at present.
The Zacks Consensus Estimate for PAA’s earnings is pegged at 23 cents per unit. The firm delivered an average earnings surprise of 11.3% in the last four quarters.
Devon Energy (DVN - Free Report) is likely to report an earnings beat when it announces third-quarter results on Nov 7, after market close. It has an Earnings ESP of +2.88% and a Zacks Rank #2 at present.
DVN’s long-term (three to five years) earnings growth rate is 51.35%. The company delivered an average earnings surprise of 0.8% in the last four quarters.
Cactus, Inc. (WHD - Free Report) is expected to come up with an earnings beat when it reports third-quarter results on Nov 8, after market close. It has an Earnings ESP of +6.23% and a Zacks Rank #2 at present.
WHD’s long-term earnings growth rate is 5.79%. It delivered an average earnings surprise of 13.5% in the last four quarters.
Image: Bigstock
What's in Store for NextEra Energy Partners (NEP) in Q3 Earnings?
NextEra Energy Partners, LP (NEP - Free Report) is scheduled to release third-quarter 2023 results on Oct 24, before market open. The firm delivered a negative earnings surprise of 26.4% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Note
The firm’s third-quarter earnings are expected to have benefited from the ongoing growth of its high-quality renewable energy portfolio. During the second quarter, NEP completed the acquisition of a 690-megawatt (MW) portfolio of operating wind and solar projects from Energy Resources. This is expected to further drive the firm’s performance in the to-be-reported quarter.
NextEra Energy Partners’ earnings are also expected to gain from Yellow Pine Solar, a 125-MW solar generation and a 65-MW storage facility in Nevada, which started commercial operations during the to-be-reported quarter.
The firm 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 third-quarter earnings.
Q3 Expectations
The Zacks Consensus Estimate for NextEra Energy Partners’ earnings is pegged at 48 cents per unit, implying a year-over-year decline of 48.4%.
The consensus mark for revenues is pinned at $386.6 million, indicating a 28% improvement year over year.
Our Zacks model predicts renewable energy sales to contribute nearly 84% to the firm’s total revenues compared with 78.1% in the year-ago quarter.
What Our 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 -14.94%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, the firm carries a Zacks Rank #5 (Strong Sell).
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.
Plains All American Pipeline (PAA - Free Report) is expected to post an earnings beat when it announces third-quarter results on Nov 3, before market open. It has an Earnings ESP of +54.84% and a Zacks Rank #2 at present.
The Zacks Consensus Estimate for PAA’s earnings is pegged at 23 cents per unit. The firm delivered an average earnings surprise of 11.3% in the last four quarters.
Devon Energy (DVN - Free Report) is likely to report an earnings beat when it announces third-quarter results on Nov 7, after market close. It has an Earnings ESP of +2.88% and a Zacks Rank #2 at present.
DVN’s long-term (three to five years) earnings growth rate is 51.35%. The company delivered an average earnings surprise of 0.8% in the last four quarters.
Cactus, Inc. (WHD - Free Report) is expected to come up with an earnings beat when it reports third-quarter results on Nov 8, after market close. It has an Earnings ESP of +6.23% and a Zacks Rank #2 at present.
WHD’s long-term earnings growth rate is 5.79%. It delivered an average earnings surprise of 13.5% in the last four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.