) will release its fourth quarter 2012 financial results before
the market bell on Jan 29, 2013. In the prior quarter, this
electric utility reported a negative surprise of 9.35%. NextEra
currently has a Zacks Rank #2 (Buy). Let's see how things are
shaping up at NextEra prior to this announcement.
Factors to Consider This Quarter
NextEra Energy produces nearly 70% of its electricity through
natural gas plants and renewable sources. The company continues
to invest in non-polluting plants for new generation. In Dec 12,
NextEra filed a proposal to build a natural gas pipeline, which
will allow it to generate more power from natural gas serving
residents of the state of Florida.
However, the adverse market conditions continue to negatively
impact the performance of the Energy Resource segment. This tepid
outlook is expected to influence the fourth quarter results as
well. Other negative triggers in the quarter include the effect
of Hurricane Sandy disrupting operations in NextEra's service
Accordingly, our proven model does not conclusively show that
NextEra Energy is likely to beat earnings this quarter. That is
because a stock needs to have both a positive earnings Expected
Surprise Prediction (ESP) (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank of #1, 2 or 3 for this to happen. This is not
the case here.
Negative Zacks ESP
: This is because the Most Accurate estimate stands at 94 cents
while the Zacks Consensus Estimate is higher at 96 cents,
resulting in -2.08% ESP.
Zacks Rank #2 (Buy)
: NextEra's Zacks Rank #2 complicates the forecasting power of
ESP making surprise prediction difficult. We caution investors
against the stock going into the earnings announcement, as a
negative Zacks ESP lowers the possibility of an earnings
Other Stocks to Consider
Other companies you may want to consider on the basis of our
model which shows that they have the right combination of
elements to post an earnings beat this quarter:
Wisconsin Energy Corp.
) has earnings ESP of +2.38% and carries a Zacks Rank #1 (Strong
Clean Energy Fuels Corp.
) has earnings ESP of +87.50% and carries a Zacks Rank #2 (Buy).
Public Service Enterprise Group Inc
) has earnings ESP of +5.26% and carries a Zacks Rank #3
CLEAN EGY FUELS (CLNE): Free Stock Analysis
NEXTERA ENERGY (NEE): Free Stock Analysis
PUBLIC SV ENTRP (PEG): Free Stock Analysis
WISC ENERGY CP (WEC): Free Stock Analysis
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