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What's in the Cards for Xcel Energy (XEL) in Q1 Earnings?

Zacks Equity Research

Xcel Energy Inc. XEL is scheduled to release first-quarter earnings on May 7, before market open. The company delivered a positive earnings surprise of 5.66% in the last reported quarter.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factor to Consider

Despite the impact of the COVID-19 outbreak the company’s first-quarter results are likely to reflect benefits from higher residential demand. The company generates significant portion of its revenues from residential usage of electric and natural gas, which can marginally offset the decline in demand from commercial and industrial customers.

Xcel Energy Inc. Price and EPS Surprise


Xcel Energy Inc. Price and EPS Surprise

Xcel Energy Inc. price-eps-surprise | Xcel Energy Inc. Quote


Q1 Expectations

The Zacks Consensus Estimate for first-quarter 2020 sales is pegged at $3.28 billion, which indicates a rise of 4.28% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at 59 cents, which calls for year-over-year decline of 3.28%.

What Our Quantitative Model Predicts

Our proven model doesn’t conclusively predict an earnings beat for Xcel Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here as you will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Xcel Energy carries a Zacks Rank #3.

Stocks to Consider

Investors can consider the following players from the same sector that have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Spire Inc. SR is set to release first-quarter 2020 numbers on May 8. It has an Earnings ESP of +0.17% and carries a Zacks Rank #3.

Algonquin Power & Utilities Corp. AQN is scheduled to release first-quarter 2020 results on May 7. It has an Earnings ESP of +1.59% and a Zacks Rank #2.

Consolidated Edison Inc ED is scheduled to release first-quarter results 2020 on May 7. It has an Earnings ESP of +0.52% and a Zacks Rank #3.

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