Shares of NextEra Energy Inc. (NEE - Free Report) were up 1.64% at market close on Friday, April 21, 2017, as the company reported better than expected results. The company reported a 3.57% year-over-year increase in first quarter of 2017 revenues. Moreover, it beat the Zacks Consensus Estimate on both earnings and revenue (read: NextEra Energy Beats Q1 Earnings, Revenue Estimates).
Q1 Performance
NextEra Energy reported non-GAAP earnings per share (EPS) of $1.75, up 12.9% year over year and beating the Zacks Consensus Estimate of $1.56. Moreover, revenues of $3.972 billion came ahead of the consensus mark of $3.943 billion.
The company reported operating income of $2.405 billion, up from $1.234 billion a year ago.
Revenue Performance
Florida Power and Light revenue rose to $2.527 billion from $2.303 billion.
NextEra Energy Resources revenues dropped to $1.424 billion from $1.441 billion a year ago.
Corporate and Other revenues dropped to $21 million from $91 million a year ago.
Guidance
NextEra Energy expects adjusted EPS to be in a range of $6.35-$6.85 for 2017 and $6.80-$7.30 for 2018.
In the current scenario, let us discuss the following ETFs with a high exposure to NextEra Energy.
Utilities Select Sector SPDR Fund (XLU - Free Report)
This fund is one of the most popular ETFs providing exposure to the U.S. utilities sector. It has AUM of $7.52 billion and charges a fee of 14 basis points a year. It has a 9.50% allocation to NextEra energy (as of April 24, 2017). The fund returned 9.45% in the past one year and 7.06% in the year-to-date time frame (as of April 24, 2017). It closed 0.51% higher on Friday, April 21, 2017. XLU currently has a Zacks ETF Rank of #4 (Sell) with a Medium risk outlook (read: See How ETFs React When Hawks Act Like Doves).
iShares U.S. Utilities ETF (IDU - Free Report)
This ETF tracks the performance of the U.S. utilities sector and is relatively expensive. It has AUM of $808.40 million and charges a fee of 43 basis points a year. It has 8.24% allocation to NextEra Energy (as of April 21, 2017). The fund returned 9.35% in the past one year and 6.70% in the year-to-date time frame (as of April 24, 2017). It closed 0.58% higher on Friday, April 21, 2017. IDU currently has a Zacks ETF Rank of #4 with a Medium risk outlook.
Fidelity MSCI Utilities Index ETF (FUTY - Free Report)
This ETF is a relatively cheaper bet on the U.S. utilities sector. It has AUM of $281.8 million and charges a fee of 8 basis points a year. It has 7.95% allocation to NextEra (as of April 21, 2017). The fund returned 10.05% in the past one year and 6.71% in the year-to-date time frame (as of April 24, 2017). It closed 0.51% higher on Friday, April 21, 2017. FUTY currently has a Zacks ETF Rank of #4 with a Medium risk outlook.
Below is a year-to-date performance comparison of the funds and NextEra Energy Inc.
Source: Yahoo Finance
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Shares of NextEra Energy Inc. (NEE - Free Report) were up 1.64% at market close on Friday, April 21, 2017, as the company reported better than expected results. The company reported a 3.57% year-over-year increase in first quarter of 2017 revenues. Moreover, it beat the Zacks Consensus Estimate on both earnings and revenue (read: NextEra Energy Beats Q1 Earnings, Revenue Estimates).
Q1 Performance
NextEra Energy reported non-GAAP earnings per share (EPS) of $1.75, up 12.9% year over year and beating the Zacks Consensus Estimate of $1.56. Moreover, revenues of $3.972 billion came ahead of the consensus mark of $3.943 billion.
The company reported operating income of $2.405 billion, up from $1.234 billion a year ago.
Revenue Performance
Florida Power and Light revenue rose to $2.527 billion from $2.303 billion.
NextEra Energy Resources revenues dropped to $1.424 billion from $1.441 billion a year ago.
Corporate and Other revenues dropped to $21 million from $91 million a year ago.
Guidance
NextEra Energy expects adjusted EPS to be in a range of $6.35-$6.85 for 2017 and $6.80-$7.30 for 2018.
In the current scenario, let us discuss the following ETFs with a high exposure to NextEra Energy.
Utilities Select Sector SPDR Fund (XLU - Free Report)
This fund is one of the most popular ETFs providing exposure to the U.S. utilities sector. It has AUM of $7.52 billion and charges a fee of 14 basis points a year. It has a 9.50% allocation to NextEra energy (as of April 24, 2017). The fund returned 9.45% in the past one year and 7.06% in the year-to-date time frame (as of April 24, 2017). It closed 0.51% higher on Friday, April 21, 2017. XLU currently has a Zacks ETF Rank of #4 (Sell) with a Medium risk outlook (read: See How ETFs React When Hawks Act Like Doves).
iShares U.S. Utilities ETF (IDU - Free Report)
This ETF tracks the performance of the U.S. utilities sector and is relatively expensive. It has AUM of $808.40 million and charges a fee of 43 basis points a year. It has 8.24% allocation to NextEra Energy (as of April 21, 2017). The fund returned 9.35% in the past one year and 6.70% in the year-to-date time frame (as of April 24, 2017). It closed 0.58% higher on Friday, April 21, 2017. IDU currently has a Zacks ETF Rank of #4 with a Medium risk outlook.
Fidelity MSCI Utilities Index ETF (FUTY - Free Report)
This ETF is a relatively cheaper bet on the U.S. utilities sector. It has AUM of $281.8 million and charges a fee of 8 basis points a year. It has 7.95% allocation to NextEra (as of April 21, 2017). The fund returned 10.05% in the past one year and 6.71% in the year-to-date time frame (as of April 24, 2017). It closed 0.51% higher on Friday, April 21, 2017. FUTY currently has a Zacks ETF Rank of #4 with a Medium risk outlook.
Below is a year-to-date performance comparison of the funds and NextEra Energy Inc.
Source: Yahoo Finance
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
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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