What's in Store for NextEra Energy Partners (NEP) in Q2 Earnings?

Core Viewpoint - NextEra Energy Partners, LP (NEP) is anticipated to report strong second-quarter 2024 results, benefiting from previous strategic sales and investments in renewable energy [1][3][12]. Group 1: Upcoming Earnings Expectations - NEP is scheduled to release its second-quarter results on July 24, 2024, before market open [1]. - The Zacks Consensus Estimate for revenues is projected at $366.9 million, reflecting a year-over-year increase of 4.8% [4]. - The earnings estimate is pegged at 59 cents per unit, indicating an 11.3% increase year-over-year [12]. Group 2: Factors Influencing Performance - The firm is expected to benefit from the sale of its Texas natural gas pipeline portfolio, completed in December 2023, which provided funds for NEP Renewables II buyouts in June 2024 [3]. - Continued expansion of its high-quality renewable energy portfolio is anticipated to positively impact earnings [9]. - The focus on long-term contracted clean energy assets with attractive cash flows is likely to contribute to earnings growth [10]. - Structural tax advantages may enhance earnings, as the firm is not expected to pay significant U.S. taxes for at least 15 years [17]. Group 3: Earnings Prediction Model - The earnings prediction model indicates a strong likelihood of an earnings beat for NEP, supported by a positive Earnings ESP of +8.11% and a Zacks Rank of 2 (Buy) [5][18].