TECO Energy, Inc. (TE) is slated to release its second quarter 2014 financial results before the market bell on Jul 31, 2014. The company posted a positive earnings surprise of 4.55% in the preceding quarter. Let’s see how things are shaping up prior to this announcement.
Growth Factors this Quarter
TECO Energy’s regulated electric utility – Tampa Electric – has an expanded presence in West Central Florida. The pronounced recovery in the Florida economy will lead to a higher customer count in all classes, namely, residential, commercial and industrial.
TECO Energy is also investing in capital projects to strengthen its operations and replace aging infrastructure. This will help the company to serve its expanding customer base in a more reliable manner.
During the second quarter TECO Energy reached a settlement to acquire New Mexico Gas Co. The acquisition is expected to close in the third quarter and will further extend TECO Energy’s operations and customer base.
Earnings Whispers
Our proven model conclusively shows that TECO Energy is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is the case here.
Positive ESP: This is because the Most Accurate estimate stands at 28 cents while the Zacks Consensus Estimate is 27 cents per share, resulting in +3.70% ESP.
Zacks Rank #2: TECO Energy’s Zacks Rank #2 combined with a +3.70% ESP indicates that the company is likely to beat the earnings forecast this quarter
Other Stocks to Consider
Here are some other companies in the utility space having the right combination of elements to post an earnings beat this quarter.
Ameren Corporation (AEE) has an earnings ESP of +14.04% and sports a Zacks Rank #2.
Consolidated Edison, Inc. (ED) has an earnings ESP of +9.26% and holds a Zacks Rank #1.
TELUS Corporation (TU) has an earnings ESP of +1.85% and carries a Zacks Rank #2.
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