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Xcel Energy (XEL) to Report Q4 Earnings: Is a Beat in Store?

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Xcel Energy (XEL - Free Report) is expected to release fourth-quarter 2018 results on Jan 31, before market opens. The utility company reported negative earnings surprise of 2.04% in the last reported quarter.
 
What Does Our Quantitative Model Say?

Our proven model shows that Xcel Energy is likely to beat estimates in the upcoming quarterly results. A stock needs to have a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Earnings ESP is pegged at +0.39%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Xcel Energy carries a Zacks Rank #3. The combination of Xcel Energy’s favorable Zacks Rank and a positive ESP makes us reasonably confident of a positive earnings surprise.

Conversely, we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Xcel Energy Inc. Price, Consensus and EPS Surprise

Xcel Energy Inc. Price, Consensus and EPS Surprise | Xcel Energy Inc. Quote

Factors in Play

In the first three quarters of 2018, Xcel Energy delivered earnings at the high-end of its initial guidance range. We expect the trend to continue in the fourth quarter as well. The company narrowed 2018 earnings per share guidance in the range of $2.45-$2.49, up from the previous range of $2.41-$2.51.

Xcel Energy is expected to benefit from a positive impact on demand and sales volume driven by ongoing increase in its electric and natural gas customer base.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $2.86 billion, reflecting an increase of 2.39% year over year. The company is focused on renewable expansion. We expect a positive impact of steel for fuel investment strategies in the fourth quarter.

Other Stocks to Consider

Here are a few other players from the industry that have the right combination of elements to post an earnings beat this quarter.

Ameren Corp. (AEE - Free Report) has an Earnings ESP of +4.62% and a Zacks Rank #1. The company is scheduled to report fourth-quarter results on Feb 14.

FirstEnergy Corp. (FE - Free Report) has an Earnings ESP of +2.08% and a Zacks Rank #3. The company is expected to release fourth-quarter results on Feb 19.

CMS Energy (CMS - Free Report) has an Earnings ESP of +0.49% and a Zacks Rank #1. The company is scheduled to report third-quarter results on Jan 31.

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