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TransAlta (TAC) to Report Q3 Earnings: Here's What to Expect

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TransAlta Corporation (TAC - Free Report) is scheduled to release third-quarter 2023 earnings on Nov 7, before market open. In the last reported quarter, the utility delivered an earnings surprise of 466.7%.

Let’s see how things might have shaped up prior to the quarterly announcement.

Factors to Consider

During the second quarter of 2023, TransAlta started providing 100% of the power generated from its 130-MW Garden Plain wind project under Virtual Power Purchase Agreements. This is expected to have boosted its performance in the to-be-reported quarter.

The company is expected to have benefited from the automatic share repurchase program that might have reduced its outstanding shares and boosted earnings.

The company’s third-quarter earnings are expected to have been negatively impacted by higher operation, maintenance and administration expenses. This is due to higher spending on strategic and growth initiatives, increased costs owing to inflationary pressures and higher performance-related incentive accruals.

Q3 Expectations

The Zacks Consensus Estimate for earnings is pegged at 32 cents per share, indicating an increase of 88.2% from the year-ago quarter’s reported figure.

What Our Quantitative Model Predicts

Our proven model conclusively predicts an earnings beat for TransAlta 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, which is the case here, as you will see below.
 

TransAlta Corporation Price and EPS Surprise

TransAlta Corporation Price and EPS Surprise

TransAlta Corporation price-eps-surprise | TransAlta Corporation Quote

Earnings ESP: The company’s Earnings ESP is +15.26%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Investors may also consider the following players from the same sector as these too have the right combination of elements to post an earnings beat this reporting cycle.

Ameren Corporation (AEE - 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 +0.22% and a Zacks Rank #3 at present.

AEE’s long-term earnings growth rate is 6.61%. The Zacks Consensus Estimate for earnings is pegged at $1.8 per share, indicating a year-over-year increase of 3.5%.

Spire Inc. (SR - Free Report) is likely to report an earnings beat when it announces fiscal fourth-quarter results on Nov 16, before market open. It has an Earnings ESP of +4.58% and a Zacks Rank #3 at present.

SR’s long-term earnings growth rate is 4.22%. The Zacks Consensus Estimate for fiscal 2023 earnings is pegged at $4.16 per share, indicating a year-over-year improvement of 7.8%.

Another Release

NRG Energy, Inc. (NRG - Free Report) reported third-quarter 2023 earnings of $1.62 per share, which beat the Zacks Consensus Estimate of $1.53 by 5.9%.

NRG’s long-term earnings growth rate is 10.26%. The Zacks Consensus Estimate for 2023 earnings is pegged at $5.15 per share, indicating year-over-year growth of 96.6%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 


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