Centrica is a multi-utilities company with businesses in the United Kingdom, United States, Canada, Ireland, Norway, and internationally as well. It supplies energy and services to tens of millions of customers, and Centrica share price is already up over 19% year-to-date.
When Does Centrica Report Q4 Earnings?
Centrica is expected to announce its Q4 2020 earnings on February 25th, 2021.
Market Expectations from Centrica’s Earnings Statement?
Analysts expect Centrica to report revenues close to $33.76 billion, up 14.12% YoY. A positive surprise may be in the cards given the rising energy prices seen in the last months due to harsh winter conditions.
Centrica Share Price: Technical Analysis
Centrica’s share price is in a rising channel, putting pressure on the highs after the 2020 bounce. The definition of a bullish trend says that the market reverses a previous bearish trend when it makes a new higher high above the previous lower high. In this case, a move above the key area seen in the chart above will satisfy that condition.
In other words, the market appears to build energy and to challenge that key area. On a positive earnings surprise a week from now, Centrica’s share price may pop above the previous highs, and that should trigger some more stops.
While in the rising channel, the pressure on the key is for the price to remain in the upper half of it. Bulls will step in on every move in the lower half, but the strength of the rising trend is given by the share price’s ability to remain in the upper one.
If Centrica breaks above the previous lower high, it confirms the bullish trend. From that moment on, traders will focus on buying the dip on dynamic support at half the channel’s distance and at its lower edge.
What Is the Outlook for the Centrica Share Price?
Recently, Centrica announced that it sold its U.S. unit to NRG Energy in a deal estimated at over $3.5 billion. Also, higher energy prices as a result of extreme weather conditions in the Northern hemisphere may have contributed to a positive surprise in Centrica’s earnings to be released a week from now.
Utilities are suddenly in focus again as Berkshire Hathaway, the U.S. corporate giant, reveals new positions in the sector. Whenever Warren Buffett makes a move, the market listens, and the sudden interest in the utility sector may bode well for Centrica’s future too.