NRG Energy (NRG) Reports Next Week: Wall Street Expects Earnings Growth

Core Viewpoint - The market anticipates NRG Energy (NRG) to report a year-over-year increase in earnings despite a decline in revenues when it releases its quarterly results for June 2024 [1][2]. Earnings Expectations - NRG is expected to post quarterly earnings of $1.30 per share, reflecting an 18.2% increase year-over-year [3]. - Revenues are projected to be $4.48 billion, which is a decrease of 29.4% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 4.67% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for NRG matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the potential deviation of actual earnings from the consensus estimate, with a strong predictive power for positive readings [6][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have shown a nearly 70% success rate in delivering positive surprises [8]. Historical Performance - In the last reported quarter, NRG was expected to earn $0.92 per share but only achieved $0.80, resulting in a surprise of -13.04% [11]. - Over the past four quarters, NRG has beaten consensus EPS estimates three times [12]. Conclusion - NRG does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding this stock ahead of its earnings release [15].