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NextEra (NEE) Q2 Earnings Beat, Revenues Miss Estimates

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NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2021 adjusted earnings of 71 cents per share, which beat the Zacks Consensus Estimate of 67 cents by 5.6%. The bottom line was also up 9.2% from 65 cents per share in the prior-year quarter.

This year-over-year improvement was owing to solid performance of all businesses and expansion of its customer base.
 
On a GAAP basis, the company recorded earnings of 13 cents compared with 65 cents per share in the year-ago quarter.

Total Revenues

For the second quarter, NextEra’s operating revenues were $3,927 million, which lagged the Zacks Consensus Estimate of $5,125 million by 23.4%. The top line also dipped 6.6% year over year.

NextEra Energy, Inc. Price, Consensus and EPS Surprise

NextEra Energy, Inc. Price, Consensus and EPS Surprise

NextEra Energy, Inc. price-consensus-eps-surprise-chart | NextEra Energy, Inc. Quote

Segment Results

Florida Power & Light Company (FPL): Revenues amounted to $3,219 million, up 13.9% from the prior-year figure of $2,825 million. Segmental earnings came in at 42 cents per share, up 10.5% from 38 cents recorded a year ago.

Gulf Power Company (Gulf Power): Total revenues came in at $350 million, up 5.1% from the year-earlier figure. Earnings per share totaled 3 cents for the reported quarter, on par with the year-ago level.

NextEra Energy Resources: Revenues summed $380 million, down 64.7% from the prior-year quarter. Quarterly earnings came in at 29 cents per share compared with 27 cents in the year-ago quarter.

Corporate and Other: Operating loss for the reported quarter was 3 cents per share from this segment, on par with the year-ago period.

Highlights of the Release

During the quarter, FPL successfully commissioned nearly 373 megawatts (MW) of new solar, including the FPL Discovery Solar Energy Center at Kennedy Space Center. Owing to these new additions, FPL surpassed 40% completion of the groundbreaking "30-by-30" plan of installing 30 million solar panels by 2030.

For second-quarter 2021, FPL's average number of customers increased nearly 78,400 from the prior-year period.

During the quarter, the company invested $1.6 billion in the FPL unit and $150 million in the Gulf Power unit to strengthen its existing infrastructure as well as increase operational resilience.

NextEra Energy Resources expanded the contracted renewables backlog by adding 1,840 MW of renewable projects during the June quarter.

Financial Update

The company had cash and cash equivalents of $884 million as of Jun 30, 2021 compared with $1,105 million on Dec 31, 2020.

Long-term debt as of Jun 30, 2021 was $47.6 billion, up from $41.94 billion on Dec 31, 2020.

Cash flow from operating activities for first-half 2021 was $3,495 million compared with $3,792 million in the prior-year period.

Guidance

NextEra reiterated 2021 earnings expectation in the range of $2.40-$2.54 per share. The metric is projected to see a CAGR of 6-8% per year through 2023, off a 2021 base. As a result, its earnings per share guided range for 2022 and 2023 is estimated at $2.55-$2.75 and $2.77-$2.97, respectively.

The company’s unit, Energy Resources currently aims to add 22,675-30,000 MW of renewable power projects to its portfolio within the 2021-2024 time frame.

Zacks Rank

Currently, NextEra carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Xcel Energy (XEL - Free Report) is scheduled to announce second-quarter 2021 results on Jul 29. The Zacks Consensus Estimate for earnings per share is pegged at 56 cents.

Duke Energy (DUK - Free Report) is set to release second-quarter 2021 results on Aug 5. The Zacks Consensus Estimate for earnings per share is pegged at $1.12 per share.

Dominion Energy (D - Free Report) is scheduled to announce second-quarter 2021 results on Aug 6. The Zacks Consensus Estimate for earnings per share is pegged at 77 cents per share.