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Utilities to Post Earnings on Nov 3: ED, LNT, PNW, GXP, OGE

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The Q3 earnings season is in full swing with 332 of the S&P 500 Index members having released results as of Nov 1. Reported earnings were up 1.9% year over year on 1.3% higher revenues. This week too will see a string of earnings releases from more than 1000 companies (including 130 S&P members).

For the remaining index members, projections are of a 2.0% improvement in earnings on 1.4% higher revenues despite the expectations of a 65.4% plunge in earnings on 12.2% revenue deterioration for the energy space. Notably, this could be the first quarter to record positive earnings growth after five quarters of back-to-back declines.

Let us now focus on the utility sector, which is characterized by its defensive nature and domestic orientation. As of Nov 1, 2016, 46.7% of the utility companies has revealed quarterly numbers. Reported earnings were up 2.2% year over year on 1.3% higher revenues.

The utility sector is also known for its capital-intensive nature. This is because these companies need huge capital for setting up generation facilities, and transmission and distribution infrastructure. They also require considerable funds for upgrading the existing systems to meet emission control standards.

Because of this, utilities have been benefiting from the rock-bottom interest rate environment. However, talks hinting at a rate hike before the end of the year could hamper the growth momentum of the sector. Nevertheless, we expect warmer-than-normal weather in the U.S. during the third quarter to boost sales to a large extent.

In the third quarter of 2016, sector earnings are expected to be up 9.9% on 5.2% higher revenues.

Four out of the 16 sectors in the Zacks coverage universe are expected to witness an earnings decline this season. Read more details in our weekly Earnings Preview report.

Let’s take a look at a few utilities that are scheduled to report quarterly numbers on Nov 3.

Great Plains Energy Incorporated (GXP - Free Report) reported a positive earnings surprise of 34.15% in the previous quarter. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GREAT PLAINS EN Price and EPS Surprise
 

GREAT PLAINS EN Price and EPS Surprise | GREAT PLAINS EN Quote

Great Plains Energy’s Earnings ESP, which represents the difference between the Most Accurate estimate of 97 cents and the Zacks Consensus Estimate of 95 cents, is +2.11%. According to our proven model, stocks with the combination of a positive ESP and a Zacks Rank #1, #2 or #3 (Hold) have increased chances of beating estimates.

Pinnacle West Capital Corporation (PNW - Free Report) reported a negative earnings surprise of 5.26% in the prior quarter. The company currently carries a Zacks Rank #2.

PINNACLE WEST Price and EPS Surprise

 

PINNACLE WEST Price and EPS Surprise | PINNACLE WEST Quote

The Earnings ESP for Pinnacle West Capital is -1.63%. This is because the Most Accurate estimate is $2.42, while the Zacks Consensus Estimate stands at $2.46. (Read more: Pinnacle West to Post Q3 Earnings: What's in Store?)

Consolidated Edison, Inc. (ED - Free Report) reported a positive earnings surprise of 5.48% last quarter. The company currently carries a Zacks Rank #3.

CONSOL EDISON Price and EPS Surprise
 

CONSOL EDISON Price and EPS Surprise | CONSOL EDISON Quote

Consolidated Edison has an Earnings ESP of -1.34% as the Most Accurate estimate stands at $1.47, while the Zacks Consensus Estimate is pegged at $1.49. (Read more: Consolidated Edison Q3 Earnings: What's in Store?)

Alliant Energy Corporation (LNT - Free Report) reported in-line earnings in the previous quarter. The company currently carries a Zacks Rank #3.

ALLIANT ENGY CP Price and EPS Surprise
 

ALLIANT ENGY CP Price and EPS Surprise | ALLIANT ENGY CP Quote

Alliant Energy Corporation’s Earnings ESP is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 87 cents. Read more: Alliant Energy Q3 Earnings: What Awaits the Stock?)

OGE Energy Corp. (OGE - Free Report) reported a negative earnings surprise of 14.63% in the prior quarter. The company currently carries a Zacks Rank #3.

OGE ENERGY CORP Price and EPS Surprise
 

OGE Energy’s Earnings ESP, which represents the difference between the Most Accurate estimate of 91 cents and the Zacks Consensus Estimate of 92 cents, is -1.09%.

Please check our Earnings ESP Filter Filter that enables you to find stocks that are expected to come out with earnings surprises.

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