) will release its fourth quarter 2013 financial results before
the market open on Jan 28, 2014. In the prior quarter, this
electric utility reported a positive surprise of 2.14%. NextEra
currently has a Zacks Rank #2 (Buy). Let's see how things are
shaping up at NextEra prior to this announcement.
ENTERGY CORP (ETR): Free Stock Analysis
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Factors to Consider This Quarter
NextEra Energy produces the majority of its electricity from
natural gas plants and renewable sources. The company continues
to invest in non-polluting plants for new generation.
During 2013, NextEra Energy has taken quite a few initiatives to
reduce expenses. The company's Project Momentum is aimed at
driving operational efficiency. The company has already incurred
some cots for these initiatives. These initiatives are likely to
have a combined negative impact of 16 to 18 cents on 2013
NextEra hopes to achieve compound annual earnings growth of 5% to
7% over the 2012-2016 time frame on the back of these
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
(Expected Surprise Prediction) 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 combined with a negative ESP complicates
the forecasting power, 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 surprise.
Other Stocks to Consider
The following are the 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:
) has earnings ESP of +1.45% and carries a Zacks Rank #3 (Hold).
) has earnings ESP of +2.22% and carries a Zacks Rank #3 (Hold).
) has earnings ESP of +16.00% and carries a Zacks Rank #3