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Can NextEra Energy (NEE) Maintain Earnings Beat Streak in Q4?

NextEra Energy, Inc.NEE is likely to bea t earnings estimates when i t report s fourth-quarter 2018 results on Jan 25, before the opening bell. This utility delivered a positive earnings surprise of 0.46% in the last reported quarter.

Moreover, the company reported positive earnings surprise in the last three quarters, with average of 3.79%.

Why a Likely Positive Surprise?

Our proven model shows that NextEra Energy is likely to beat on earnings because it has the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can see the complete list of today's Zacks #1 Rank stocks here .

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

NextEra Energy, Inc. Price and EPS Surprise

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

Earnings ESP : The company has an Earnings ESP of +0.71% as the Most Accurate Estimate is pegged at $1.53, higher than the Zacks Consensus Estimate of $1.52 per share.

Zacks Rank : NextEra Energy currently carries a Zacks Rank #3. The combination of NextEra Energy's Zacks Rank #3 and +0.71% ESP makes us quite confident of an earnings beat in the quarter to be reported.

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

Factors at Play

NextEra Energy's fourth-quarter earnings are expected to get a boost from the strength in Florida economy. Its consistent expansion of the customer base is also going to have a positive impact on demand and results.

NextEra Energy has plans to invest nearly $40.0-$44.0 billion in different projects over the 2017-2020 period. The company is focused on lowering emissions and adding more renewable assets in its generation portfolio, which will continue to have a positive impact on the bottom line.

NextEra Energy's high-quality services along with utility bills, which are the lowest in the state, attract more customers and in turn drive performance.

Other Stocks to Consider

In addition to NextEra Energy, investors can also consider the following players from the same industry that also have the right combination of elements to post an earnings beat in the to-be-reported quarter.

American Corporation AEE is anticipated to release fourth-quarter 2018 results on Feb 15. It has an Earnings ESP of +2.13% and a Zacks Rank #1.

FirstEnergy Corporation FE is expected to release fourth-quarter 2018 numbers on Feb 19. It has an Earnings ESP of +4.89% and carries a Zacks Rank #2.

Entergy Corporation ETR is anticipated to release fourth-quarter 2018 results on Feb 22. It has an Earnings ESP of +19.79% and a Zacks Rank #2.

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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.


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

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