Integrys Energy Group, Inc. TEG is slated to report first-quarter 2015 results on May 5, 2015 after the market close. Last quarter, the utility had posted a positive earnings surprise of 6.49%. Let’s see how things are shaping up for this announcement.
Factors Affecting This Quarter
Chicago, IL-based Integrys Energy is a diversified holding company providing products and services in both regulated and non-regulated energy markets. It conducts its regulated utility operations through its wholly owned subsidiaries.
Integrys Energy Group is slated to be acquired by Wisconsin Energy Corp. WEC in a cash and stock deal valued at $9.1 billion. The enlarged company will bring synergies through economies of scale. The deal is most likely to close by the end of the first half of this year. Investor focus is likely to remain on the takeover by Wisconsin Energy.
Earnings Whispers?
Our proven model does not conclusively show that Integrys Energy will beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat consensus estimates. That is not the case here as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.80 per share.
Zacks Rank: Integrys Energy Zacks Rank #4 (Sell), which when combined with 0.00% ESP, makes an earnings beat unlikely.
As it is, we caution against stocks with a Zacks Rank #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some stocks in the same sector you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season:
Southwest Gas Corp. SWX has an earnings ESP of +1.26% and a Zacks Rank #3.
Consolidated Edison, Inc. ED has an earnings ESP of +1.71% and a Zacks Rank #3.
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