NRG Energy NRG is scheduled to release first-quarter 2026 results on May 6, before the market opens. The company delivered an earnings surprise of 1.98% in the last-reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
NRG’s Q1 Expectations
The Zacks Consensus Estimate for earnings is pegged at $1.65 per share, which implies a year-over-year decrease of 37.02%.
The Zacks Consensus Estimate for revenues is pinned at $10.36 billion, indicating an increase of 20.70% from the year-ago reported number.
Factors Likely to Have Impacted NRG’s Q1 Earnings
NRG Energy’s first-quarter earnings are likely to have benefited from synergies coming from its strategic asset acquisition. The company completed the acquisition of a portfolio of generation assets and C Power from LS Power, adding 18 gas plants and doubling NRG’s generation capacity to more than 25 gigawatts. The acquisitions strengthen grid reliability, support load growth and are likely to have positively impacted first-quarter earnings.
NRG is expected to have benefited from an increase in load growth driven by an expanding customer base and a rise in data center demand. These factors are likely to have supported revenue growth and acted as a tailwind to the earnings to be reported.
The company’s systematic capital allocation, along with strong free cash flow, is likely to have allowed it to repurchase shares. This reduces outstanding shares and is likely to boost the earnings per share in the first quarter.
However, a rise in finance expenses following the LS Power acquisition may have weighed on some positives.
What Our Quantitative Model Predicts for NRG
Our proven model does not predict an earnings beat for NRG 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 odds of an earnings beat, which is not the case here as you will see below.
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, NRG Energy carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
NRG Energy, Inc. Price and EPS Surprise
NRG Energy, Inc. price-eps-surprise | NRG Energy, Inc. Quote
Stock to Consider
Investors may also consider the following player from the same industry, as it has the right combination of elements to post an earnings beat this reporting cycle.
Duke Energy Corporation DUK is scheduled to report first-quarter results on May 5 and is likely to have registered an earnings beat. It has an Earnings ESP of +1.31% and a Zacks Rank #3 at present.
DUK has a dividend yield of 3.31%. The Zacks Consensus Estimate for first-quarter EPS is pinned at $1.79, which implies a year-over-year increase of 1.70%.
Ameren Corporation AEE is set to report first-quarter results on May 6 and is likely to have come up with an earnings beat. It has an Earnings ESP of +1.29% and a Zacks Rank #3 at present.
AEE’s long-term (three to five years) earnings growth rate is 9.27%. The Zacks Consensus Estimate for first-quarter EPS is pinned at $1.17, which implies a year-over-year increase of 9.35%.
PPL Corporation PPL is set to report first-quarter results on May 8 and is likely to have come up with an earnings beat. It has an Earnings ESP of +0.41% and a Zacks Rank #3 at present.
PPL’s long-term earnings growth rate is 7.52%. The Zacks Consensus Estimate for first-quarter EPS is pinned at 61 cents, which implies a year-over-year increase of 1.67%.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PPL Corporation (PPL): Free Stock Analysis Report
Ameren Corporation (AEE): Free Stock Analysis Report
NRG Energy, Inc. (NRG): Free Stock Analysis Report
Duke Energy Corporation (DUK): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).