Electric Utility Stocks' Q2 Earnings On Jul 27: NEE, WEC, SO
Zacks Investment Research | Jul 26, 2016 07:33AM ET
Utilities are among the safest investment options due to the regulated nature of their business which gives their revenues a high level of certainty. Adding to the positives, a domestic orientation shields these companies from unfavorable foreign currency translation, which is a major cause of concern for many an industry.
The Q2 earnings season in the utility sector will kick start this week with five utility majors scheduled to report quarterly numbers. Notably, an analysis of the earnings estimates for this quarter shows only a modest improvement from the exceptionally weak levels of the last couple of quarters. However, the benchmark S&P 500 index is likely to witness a decline for the fifth quarter in a row, with growth in the negative territory for 9 of the 16 Zacks sectors.
So far, 126 S&P 500 members have released Q2 results, accounting for a total of 32.7% of the index’s market capitalization. Total earnings for these companies have declined 1.1% due to 2.6% lower revenues. However, an impressive 70.6% managed to beat earnings estimates, while 55.6% surpassed top-line expectations.
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