NRG Energy, Inc. (NRG) is scheduled to release fourth-quarter 2021 results on Feb 24 before market open. NRG Energy witnessed an earnings surprise of 53.85% in the last reported quarter.

Let’s see how things have shaped up before the upcoming earnings announcement.

Factors to Consider

NRG Energy’s quarterly earnings are likely to have benefited from strong residential demand. NRG continues to benefit from synergies created by the Direct Energy acquisition. The reduction in the debt balance is likely to have lowered capital servicing costs and have boosted margins in the fourth quarter.

NRG Energy’s fourth-quarter earnings are likely to have been adversely impacted by unanticipated supply-chain constraints.

Expectations

The Zacks Consensus Estimate for fourth-quarter earnings per share (EPS) is pegged at $1.34, indicating a 152.83% decline from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for fourth-quarter 2021 revenues is pegged at $1.21 billion, indicating a 40.21% decline from the year-ago quarter’s reported figure.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for NRG Energy this time. 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, which is not the case here as you will see below.

NRG Energy, Inc. Price and EPS Surprise

NRG Energy, Inc. price-eps-surprise | NRG Energy, Inc. Quote

Earnings ESP: NRG Energy has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Zacks Rank: Currently, NRG carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Investors can consider the following players from the same industry who have the right combination of elements to beat earnings in this reporting cycle.

American Electric Power (AEP) is likely to come up with an earnings beat when it reports fourth-quarter results on Feb 24 before market open. American Electric Power has an Earnings ESP of +0.43% and a Zacks Rank of #3 at present. The Zacks Consensus Estimate for AEP’s 2022 EPS has surged 6.2% year over year.

TransAlta Corporation (TAC) is likely to come up with an earnings beat when it reports fourth-quarter results on Feb 24 before market open. TransAlta has an Earnings ESP of +100.00% and a Zacks Rank of #3 at present. The Zacks Consensus Estimate for TAC’s 2022 EPS has surged 143.1% year over year.

Public Service Enterprise Group (PEG) is likely to come up with an earnings beat when it reports fourth-quarter results on Feb 24 before market open. Public Service Enterprise has an Earnings ESP of +0.37% and a Zacks Rank of #3 at present. The Zacks Consensus Estimate for PEG’s 2021 EPS has surged 6.4% year over year.