Xcel Energy to Report Q4 Earnings: What's in Store for the Stock?

Xcel Energy XEL is set to report fourth-quarter 2025 results on Feb. 5, before market open. The company reported a negative earnings surprise of 5.34% in the last reported quarter.

Let us discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors Likely to Have Impacted XEL’s Q4 Earnings

Xcel Energy’s fourth-quarter earnings are expected to benefit from fresh demand coming in from its expanding electric and natural gas customer base. The company has been investing in developing new service centers across Minnesota to provide efficient services to its customers, which is likely to have assisted in adding new customers and retaining existing ones.

Fourth-quarter earnings are likely to have gained from constructive outcomes in all pending proceedings, including authorization to defer incremental insurance costs related to wildfire risk and recovery of operations and maintenance costs associated with wildfire mitigation efforts.

However, the expected increase in operation and maintenance expenses is likely to have offset some of the positives in the fourth quarter. An increase in property taxes and interest expenses might further act as a headwind in the fourth-quarter performance.

Q4 Expectations for XEL

The Zacks Consensus Estimate for earnings per share is pegged at 97 cents, implying a year-over-year increase of 19.75%.

The consensus estimate for revenues is pinned at $ 3.73 billion, indicating an increase of 19.44% from the year-ago reported number.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Xcel 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. That is not the case here, as you will see below.
 

Xcel Energy Inc. Price and EPS Surprise

Xcel Energy Inc. price-eps-surprise | Xcel Energy Inc. Quote

XEL’s Earnings ESP: The company has an Earnings ESP of -1.37% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

XEL’s Zacks Rank: Currently, Xcel Energy carries a Zacks Rank #3.

Stocks to Consider

Investors may consider the following players from the same industry, as these have the right combination of elements to post an earnings beat this reporting cycle.

Fortis FTS is likely to come up with an earnings beat when it reports fourth-quarter results on Feb. 12. It has an Earnings ESP of +0.41% and a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.

FTS’ long-term (three to five years) earnings growth rate is 4.29%. The Zacks Consensus Estimate for fourth-quarter EPS is pinned at 62 cents, which implies a year-over-year increase of 5.08%.

Pinnacle West Capital PNW is likely to come up with an earnings beat when it reports fourth-quarter results on Feb. 25. It has an Earnings ESP of +250.00% and a Zacks Rank #2 at present. 

PNW’s long-term earnings growth rate is 3.56%. The Zacks Consensus Estimate for fourth-quarter EPS is pinned at 2 cents, which implies a year-over-year increase of 133.33%.

Eversource Energy ES is likely to come up with an earnings beat when it reports fourth-quarter results on Feb. 13. It has an Earnings ESP of +1.27% and a Zacks Rank #3 at present. 

ES’ long-term earnings growth rate is 5.92%. The Zacks Consensus Estimate for fourth-quarter earnings per share is pinned at $1.11, which implies a year-over-year increase of 9.90%.

Radical New Technology Could Hand Investors Huge Gains

Quantum Computing is the next technological revolution, and it could be even more advanced than AI.

While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.

Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .

Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.

Want 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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research