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NextEra (NEE) Down 0.4% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for NextEra Energy (NEE - Free Report) . Shares have lost about 0.4% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is NextEra due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
NextEra Energy, Inc. reported fourth-quarter 2021 adjusted earnings of 41 cents per share, which beat the Zacks Consensus Estimate of 40 cents by 2.5%. The bottom line was also up 2.5% from the prior-year quarter. This year-over-year improvement was owing to the solid performance of all businesses and the expansion of its customer base.
NextEra Energy’s 2021 earnings per share were $2.55, up 10.4% from $2.31 in 2020. The successful execution of NextEra’s 2021 initiatives resulted in the strong performance. The 2021 earnings were better than the expected range of $2.40-$2.54 per share.
Total Revenues
For the fourth quarter, NextEra’s operating revenues were $5,046 million, which lagged the Zacks Consensus Estimate of $5,436 million by 7.2%. Nonetheless, the top line improved 14.8% year over year.
Segment Results
Florida Power & Light Company (FPL): Revenues amounted to $3,064 million, up 7.8% from the prior-year figure of $2,842 million. Segmental earnings came in at 28 cents per share, up 12% from 25 cents recorded a year ago.
Gulf Power Company (Gulf Power): Total revenues came in at $366 million, up 9.9% 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 $1,833 million, up 47.5% from the prior-year quarter. Quarterly earnings came in at 21 cents per share compared with 17 cents in the year-ago quarter.
Corporate and Other: Operating loss for the reported quarter was 11 cents per share from this segment compared with a loss of 5 cents in the year-ago period.
Highlights of the Release
During the quarter, FPL commissioned the 409-MW Manatee Energy Storage Center, which will allow FPL customers to benefit from low-cost renewable energy. Construction of both the 1,200-MW Dania Beach Clean Energy Center and the North Florida Resiliency Connection remains on schedule and on budget as they continue to advance toward projected commercial operation later this year.
For fourth-quarter 2021, FPL's average number of customers increased nearly 82,000 from the prior-year period.
NextEra Energy Resources expanded the contracted renewables backlog by adding 1,500 MW of renewable projects during the December quarter. It currently has more than 16,600 MW in its backlog of signed contracts.
Financial Update
The company had cash and cash equivalents of $639 million as of Dec 31, 2021 compared with $1,105 million on Dec 31, 2020.
Long-term debt as of Dec 31, 2021 was $50.96 billion, up from $41.94 billion on Dec 31, 2020.
Cash flow from operating activities for 2021 was $7,553 million compared with $7,983 million in the comparable prior-year period.
Guidance
NextEra raised its 2022 earnings expectation to the range of $2.75-$2.85 per share from $2.55-$2.75. The midpoint of the new range is $2.80 per share, higher than the Zacks Consensus Estimate of $2.75.
For 2023, NextEra Energy expects earnings per share in the range of $2.93-$3.08, up from the prior expectation of $2.97-$2.97. For 2023 through 2025, NextEra Energy expects earnings per share to grow roughly 6-8% per year, off the expected increased 2022 adjusted earnings per share.
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.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
The consensus estimate has shifted 11.02% due to these changes.
VGM Scores
At this time, NextEra has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
NextEra has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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NextEra (NEE) Down 0.4% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for NextEra Energy (NEE - Free Report) . Shares have lost about 0.4% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is NextEra due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
NextEra Beats Q4 Earnings Estimates, Ups 2022 EPS View
NextEra Energy, Inc. reported fourth-quarter 2021 adjusted earnings of 41 cents per share, which beat the Zacks Consensus Estimate of 40 cents by 2.5%. The bottom line was also up 2.5% from the prior-year quarter. This year-over-year improvement was owing to the solid performance of all businesses and the expansion of its customer base.
NextEra Energy’s 2021 earnings per share were $2.55, up 10.4% from $2.31 in 2020. The successful execution of NextEra’s 2021 initiatives resulted in the strong performance. The 2021 earnings were better than the expected range of $2.40-$2.54 per share.
Total Revenues
For the fourth quarter, NextEra’s operating revenues were $5,046 million, which lagged the Zacks Consensus Estimate of $5,436 million by 7.2%. Nonetheless, the top line improved 14.8% year over year.
Segment Results
Florida Power & Light Company (FPL): Revenues amounted to $3,064 million, up 7.8% from the prior-year figure of $2,842 million. Segmental earnings came in at 28 cents per share, up 12% from 25 cents recorded a year ago.
Gulf Power Company (Gulf Power): Total revenues came in at $366 million, up 9.9% 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 $1,833 million, up 47.5% from the prior-year quarter. Quarterly earnings came in at 21 cents per share compared with 17 cents in the year-ago quarter.
Corporate and Other: Operating loss for the reported quarter was 11 cents per share from this segment compared with a loss of 5 cents in the year-ago period.
Highlights of the Release
During the quarter, FPL commissioned the 409-MW Manatee Energy Storage Center, which will allow FPL customers to benefit from low-cost renewable energy. Construction of both the 1,200-MW Dania Beach Clean Energy Center and the North Florida Resiliency Connection remains on schedule and on budget as they continue to advance toward projected commercial operation later this year.
For fourth-quarter 2021, FPL's average number of customers increased nearly 82,000 from the prior-year period.
NextEra Energy Resources expanded the contracted renewables backlog by adding 1,500 MW of renewable projects during the December quarter. It currently has more than 16,600 MW in its backlog of signed contracts.
Financial Update
The company had cash and cash equivalents of $639 million as of Dec 31, 2021 compared with $1,105 million on Dec 31, 2020.
Long-term debt as of Dec 31, 2021 was $50.96 billion, up from $41.94 billion on Dec 31, 2020.
Cash flow from operating activities for 2021 was $7,553 million compared with $7,983 million in the comparable prior-year period.
Guidance
NextEra raised its 2022 earnings expectation to the range of $2.75-$2.85 per share from $2.55-$2.75. The midpoint of the new range is $2.80 per share, higher than the Zacks Consensus Estimate of $2.75.
For 2023, NextEra Energy expects earnings per share in the range of $2.93-$3.08, up from the prior expectation of $2.97-$2.97. For 2023 through 2025, NextEra Energy expects earnings per share to grow roughly 6-8% per year, off the expected increased 2022 adjusted earnings per share.
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.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
The consensus estimate has shifted 11.02% due to these changes.
VGM Scores
At this time, NextEra has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
NextEra has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.