What's in Store for NRG Energy (NRG) This Earnings Season?

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NRG Energy, Inc. NRG is scheduled to report second-quarter 2018 results on Aug 2, before market opens. In the last reported quarter, the company reported earnings of 87 cents compared with the Zacks Consensus Estimate of a breakeven. Let's see how things are shaping up for this earnings season.

Factors to Consider

NRG Energy's three-year transformation plan was launched in July 2017. The primary objective of the plan is to simplify operations and strengthen the company. We believe that the company will be able to lower costs through operational efficiency, which will boost margins in second-quarter results.

The company has already started to realize the benefits of the plan and we expect the company to gain from share buyback programs which will raise shareholders' value.

The Zacks Consensus Estimate for second-quarter total revenues is pegged at $2,411 million, reflecting a decline of 10.7% year over year. However, the Zacks Consensus Estimate for earnings is pegged at 86 cents, reflecting a surge of 138.9% year over year.

NRG Energy, Inc. Price and EPS Surprise

NRG Energy, Inc. Price and EPS Surprise | NRG Energy, Inc. Quote

Earnings Whisper

Our proven model does not conclusively show that NRG Energy will beat estimates this season. This is because it does not have the right combination of two key ingredients. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates.

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

Earnings ESP: The company's Earnings ESP is 0.00%.

Zacks Rank : NRG Energy has a Zacks Rank #3. The company's favorable Zacks Rank, when combined with 0.00% ESP, lowers the possibility of an earnings beat this season.

Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Stocks to Consider

Here are some companies from the industry that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.

Alliant Energy Corp. LNT is expected to release second-quarter results on Aug 2. It has an Earnings ESP of +1.10% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

CenterPoint Energy, Inc. CNP is anticipated to release second-quarter results on Aug 3. It has an Earnings ESP of +0.93% and carries a Zacks Rank #2.

Dominion Energy Inc. D is expected to release second-quarter results on Aug 1. It has an Earnings ESP of +0.84% and a Zacks Rank #2.

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CenterPoint Energy, Inc. (CNP): Free Stock Analysis Report

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NRG Energy, Inc. (NRG): Free Stock Analysis Report

Alliant Energy Corporation (LNT): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Earnings , Stocks
Referenced Symbols: CNP , D , NRG , LNT

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