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NRG Energy (NRG) to Report Q2 Earnings: What's in Store?

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NRG Energy, Inc. (NRG - Free Report) is scheduled to release second-quarter 2024 results on Aug 8, before market open. The company delivered a negative earnings surprise of 13% in the last reported quarter.

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

Factors to Consider

NRG Energy’s earnings are expected to have continued to benefit from the integration of Vivint Smart Home service. This initiative might have increased margin per customer through a higher take rate of products and services.

NRG Energy's exploration of data center opportunities represents a significant step in its business strategy. The company is set to benefit from the increasing need for power supply in this industry.

NRG Energy is projected to have gained from the ongoing share repurchases that might have reduced its outstanding shares and improved earnings. The ongoing debt reduction efforts of NRG Energy are likely to have reduced capital financing costs and boosted earnings in the to-be-reported quarter.

Q2 Expectations

The Zacks Consensus Estimate for earnings is pegged at $1.30 per share, implying a year-over-year increase of 18.2%.

The Zacks Consensus Estimate for sales is pinned at $4.48 billion, indicating a year-over-year decrease of 29.4%.

What Our Quantitative Model Predicts

Our proven model does not 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 odds of an earnings beat. That is not the case here as you will see below.  
 

NRG Energy, Inc. Price, Consensus and EPS Surprise

NRG Energy, Inc. Price, Consensus and EPS Surprise

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

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 #4 (Sell). You can see the complete list of today's Zacks #1 Rank stocks here.

An Upcoming Release

Investors may consider the following player from the same industry as it has the right combination of elements to post an earnings beat this reporting cycle.

Algonquin Power & Utilities (AQN - Free Report) is likely to come up with an earnings beat when it reports second-quarter earnings on Aug 9. It has an Earnings ESP of +9.09% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for earnings has decreased 11.1% in the past 30 days. The Zacks Consensus Estimate for sales is pinned at $625 million, indicating a year-over-year decline of 0.5%.

Recent Releases

Eversource Energy (ES - Free Report) reported second-quarter 2024 adjusted earnings of 95 cents per share, in line with the Zacks Consensus Estimate.

ES’ long-term (three to five years) earnings growth rate is 5.73%. The Zacks Consensus Estimate for 2024 earnings indicates a year-over-year increase of 5.1%.

Exelon Corporation’s (EXC - Free Report) second-quarter 2024 earnings of 47 cents per share surpassed the Zacks Consensus Estimate of 40 cents by 17.5%.

EXC’s long-term earnings growth rate is 5.66%. It delivered an average earnings surprise of 4.5% in the trailing four quarters.

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

 

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