NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2016 adjusted earnings of $1.67 per share, outpacing the Zacks Consensus Estimate of $1.58 by 5.7%. Reported earnings also soared 7.1% year over year on the back of higher earnings from its subsidiary, NextEra Energy Resources (“NEER”).
On a GAAP basis, NextEra Energy registered second-quarter earnings of $1.16 per share compared to $1.59 earned a year ago. The variance between adjusted and GAAP earnings was due to an unrealized mark-to-market loss of $1.18 from non-qualifying hedges, income tax related benefit of 12 cents, and gain from an asset sale of 55 cents.
Total Revenue
In the second quarter, NextEra Energy’s operating revenues were $3,817 million, lagging the Zacks Consensus Estimate of $4,459 million by 14.4%.Reported revenues decreased 12.4% from $4,358 million a year ago.
Segmental Results
Florida Power & Light Company (FPL): Earnings came in at 96 cents per share compared with 97 cents in the prior-year quarter. Revenues stood at $2,750 million, down 8.2% year-over-year.
NextEra Energy Resources (NEER): Quarterly earnings came in at 67 cents per share, up from 57 cents in the year-ago quarter. Revenues amounted to $970 million, down 23.4% from the prior-year quarter.
Corporate and Other: Quarterly earnings increased from the year-ago level of 2 cents to 4 cents. Revenues in the reported quarter came in at $97 million, up 2% from the year-ago period.
Operational Update
In the reported quarter, NextEra Energy’s total operating expenses were down 17.6% to $2,648 million, primarily due to lower fuel, purchased power and interchange, lower merger-related expenses and lower taxes other than income taxes.
Operating income grew 2% to $1,169 million from $1,146 million a year ago.
NextEra’s interest expenses in the reported quarter were $602 million, up from $280 million in the prior-year quarter due to debt issuance.
Financial Update
NextEra Energy had cash and cash equivalents of $730 million as of Jun 30, 2016, compared with $571 million as of Dec 31, 2015.
Long-term debts as of Jun 30, 2016 were $27 billion, up from $26.7 billion as of Dec 31, 2015.
NextEra Energy’s cash flow from operating activities in the first six months of 2016 was $3.3 billion, compared with $2.9 billion in the year-ago period.
Guidance
NextEra reiterated its earnings guidance of $5.85–$6.35 for 2016 and $6.60–$7.10 for 2018. The company expects earnings to grow at a compound annual growth rate of 6% to 8% per year through 2018, off a 2014 base.
Upcoming Peer Releases
NiSource Inc. (NI - Free Report) is slated to report second-quarter 2016 earnings on Aug 2.The Zacks Consensus Estimate stands at 6 cents.
PG&E Corporation (PCG - Free Report) scheduled to report second-quarter 2016 earnings on Jul 28.The Zacks Consensus Estimate stands at 94 cents.
NRG Energy, Inc. (NRG - Free Report) is slated to report second-quarter 2016 earnings on Aug 9.The Zacks Consensus Estimate stands at breakeven results.
Zacks Rank
NextEra energy currently carries a Zacks Rank #4 (Sell).
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NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2016 adjusted earnings of $1.67 per share, outpacing the Zacks Consensus Estimate of $1.58 by 5.7%. Reported earnings also soared 7.1% year over year on the back of higher earnings from its subsidiary, NextEra Energy Resources (“NEER”).
On a GAAP basis, NextEra Energy registered second-quarter earnings of $1.16 per share compared to $1.59 earned a year ago. The variance between adjusted and GAAP earnings was due to an unrealized mark-to-market loss of $1.18 from non-qualifying hedges, income tax related benefit of 12 cents, and gain from an asset sale of 55 cents.
Total Revenue
In the second quarter, NextEra Energy’s operating revenues were $3,817 million, lagging the Zacks Consensus Estimate of $4,459 million by 14.4%.Reported revenues decreased 12.4% from $4,358 million a year ago.
Segmental Results
Florida Power & Light Company (FPL): Earnings came in at 96 cents per share compared with 97 cents in the prior-year quarter. Revenues stood at $2,750 million, down 8.2% year-over-year.
NextEra Energy Resources (NEER): Quarterly earnings came in at 67 cents per share, up from 57 cents in the year-ago quarter. Revenues amounted to $970 million, down 23.4% from the prior-year quarter.
Corporate and Other: Quarterly earnings increased from the year-ago level of 2 cents to 4 cents. Revenues in the reported quarter came in at $97 million, up 2% from the year-ago period.
Operational Update
In the reported quarter, NextEra Energy’s total operating expenses were down 17.6% to $2,648 million, primarily due to lower fuel, purchased power and interchange, lower merger-related expenses and lower taxes other than income taxes.
Operating income grew 2% to $1,169 million from $1,146 million a year ago.
NextEra’s interest expenses in the reported quarter were $602 million, up from $280 million in the prior-year quarter due to debt issuance.
Financial Update
NextEra Energy had cash and cash equivalents of $730 million as of Jun 30, 2016, compared with $571 million as of Dec 31, 2015.
Long-term debts as of Jun 30, 2016 were $27 billion, up from $26.7 billion as of Dec 31, 2015.
NextEra Energy’s cash flow from operating activities in the first six months of 2016 was $3.3 billion, compared with $2.9 billion in the year-ago period.
Guidance
NextEra reiterated its earnings guidance of $5.85–$6.35 for 2016 and $6.60–$7.10 for 2018. The company expects earnings to grow at a compound annual growth rate of 6% to 8% per year through 2018, off a 2014 base.
Upcoming Peer Releases
NiSource Inc. (NI - Free Report) is slated to report second-quarter 2016 earnings on Aug 2.The Zacks Consensus Estimate stands at 6 cents.
PG&E Corporation (PCG - Free Report) scheduled to report second-quarter 2016 earnings on Jul 28.The Zacks Consensus Estimate stands at 94 cents.
NRG Energy, Inc. (NRG - Free Report) is slated to report second-quarter 2016 earnings on Aug 9.The Zacks Consensus Estimate stands at breakeven results.
Zacks Rank
NextEra energy currently carries a Zacks Rank #4 (Sell).
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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