Xcel Energy to Report Q3 Earnings: What's in the Offing for the Stock?

Core Viewpoint - Xcel Energy (XEL) is expected to report third-quarter 2024 earnings on October 31, with a consensus estimate of $1.29 per share and revenues of $3.97 billion, following a negative earnings surprise of 1.82% in the previous quarter [1][2]. Group 1: Earnings Expectations - The Zacks Consensus Estimate for third-quarter earnings has increased by 2.2% over the past 30 days, while the sales estimate is projected at $3.98 billion, indicating a year-over-year growth of 14.05% [6]. - Xcel Energy currently has an Earnings ESP of -0.78% and a Zacks Rank of 2, suggesting it is unlikely to exceed earnings estimates this season [2]. Group 2: Factors Influencing Earnings - The anticipated earnings for Xcel Energy are likely to benefit from increased demand from data centers, the adoption of electric vehicles, and growth in electric and natural gas customer bases due to economic expansion in its service area [3]. - However, rising operation and maintenance expenses may counterbalance some of these positive factors. Efficient management has allowed Xcel Energy to maintain natural gas and electric rates below the national average, attracting more customers and generating additional demand [4]. Group 3: Industry Comparisons - Other companies in the industry, such as FirstEnergy Corp. and Public Service Enterprise Group Incorporated, are also expected to report earnings beats, with respective Earnings ESPs of +0.22% and +0.07% [5][6]. - Eversource Energy is projected to have a more favorable Earnings ESP of +6.00% as it approaches its earnings report [7].