We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NextEra (NEE) Down 4.6% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for NextEra Energy (NEE - Free Report) . Shares have lost about 4.6% in that time frame, underperforming 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 drivers.
NextEra Energy Q4 Earnings & Revenues Beat Estimates
NextEra Energy, Inc. reported fourth-quarter 2022 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 50 cents by 2%. The bottom line was also up 24.4% from the prior-year quarter. This year-over-year improvement was due to the solid performance of Florida Power & Light Company.
GAAP earnings for the fourth quarter were 76 cents compared with earnings of 61 cents in the year-ago period.
2022 adjusted earnings per share were $2.90, up 13.7% from $2.55 per share in the year-ago period. Earnings were near the upper end of the guidance range of 2.80-$2.90 per share.
Total Revenues
For the fourth quarter, NextEra’s operating revenues were $6,164 million, which surpassed the Zacks Consensus Estimate of $5,743 million by 7.3%. The top line improved 22.2% year over year.
2022 total revenues were $20,956 million, up 22.8% year over year. The year-over-year improvement was due to strong performances from Florida Power & Light Company and NextEra Energy Resources.
Segment Results
Florida Power & Light Company (FPL): Fourth-quarter revenues amounted to $4,071 million, up 18.7% from the prior-year figure of $3,430 million. Segmental earnings came in at 38 cents per share compared with 31 cents recorded a year ago.
NextEra Energy Resources: Revenues amounted to $2,093 million, up 28.2% from the prior-year figure of $1,633 million. Fourth-quarter earnings came in at 20 cents per share compared with 21 cents in the year-ago quarter.
Corporate and Other: The operating loss for the reported quarter was 7 cents per share compared with a loss of 11 cents in the year-ago period.
Highlights of the Release
NextEra Energy’s operating income in the fourth quarter was $2,045 million, up 50.9% from $1,355 million in the year-ago period.
Interest expenses in the fourth quarter were $685 million, up 14.4% from the year-ago period.
Courtesy of Florida’s ongoing economic improvement, FPL's average number of customers in fourth-quarter 2022 increased nearly 74,000 from the prior-year period.
NextEra Energy Resources expanded the contracted renewables backlog by adding 1,700 megawatts (MW) of renewable projects during fourth-quarter 2022. NextEra Energy Resources' backlog additions include nearly 300 MW of wind projects, 730 MW of solar projects and 670 MW of battery storage projects. NextEra Energy Resources' renewables backlog now stands at approximately 19 gigawatts after placing nearly 4,600 MW into service in 2022.
Financial Update
The company had cash and cash equivalents of $1,601 million as of Dec 31, 2022 compared with $639 million on Dec 31, 2021.
Long-term debt as of Dec 31, 2022 was $55.25 billion, up from $50.96 billion on Dec 31, 2021.
Cash flow from operating activities for 2022 was $8,262 million compared with $7,553 million in the comparable prior-year period.
Guidance
NextEra Energy expects 2023 earnings in the range of $2.98-$3.13 per share. The midpoint of the range is $3.05 per share, lower than the Zacks Consensus Estimate of $3.11.
For 2024, NextEra Energy expects earnings per share in the range of $3.23-$3.43. Through 2026, NextEra Energy expects earnings per share to grow in the range of 6 to 8% per year, offsetting the 2024 adjusted earnings per share. This translates to earnings per share in the range of $3.45 to $3.70 for 2025 and $3.63 to $4.00 for 2026.
The company’s unit, Energy Resources, currently aims to add 32,700-41,800 MW of renewable power projects to its portfolio within the 2023-2026 time frame.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
Currently, NextEra has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, NextEra has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
NextEra (NEE) Down 4.6% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for NextEra Energy (NEE - Free Report) . Shares have lost about 4.6% in that time frame, underperforming 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 drivers.
NextEra Energy Q4 Earnings & Revenues Beat Estimates
NextEra Energy, Inc. reported fourth-quarter 2022 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 50 cents by 2%. The bottom line was also up 24.4% from the prior-year quarter. This year-over-year improvement was due to the solid performance of Florida Power & Light Company.
GAAP earnings for the fourth quarter were 76 cents compared with earnings of 61 cents in the year-ago period.
2022 adjusted earnings per share were $2.90, up 13.7% from $2.55 per share in the year-ago period. Earnings were near the upper end of the guidance range of 2.80-$2.90 per share.
Total Revenues
For the fourth quarter, NextEra’s operating revenues were $6,164 million, which surpassed the Zacks Consensus Estimate of $5,743 million by 7.3%. The top line improved 22.2% year over year.
2022 total revenues were $20,956 million, up 22.8% year over year. The year-over-year improvement was due to strong performances from Florida Power & Light Company and NextEra Energy Resources.
Segment Results
Florida Power & Light Company (FPL): Fourth-quarter revenues amounted to $4,071 million, up 18.7% from the prior-year figure of $3,430 million. Segmental earnings came in at 38 cents per share compared with 31 cents recorded a year ago.
NextEra Energy Resources: Revenues amounted to $2,093 million, up 28.2% from the prior-year figure of $1,633 million. Fourth-quarter earnings came in at 20 cents per share compared with 21 cents in the year-ago quarter.
Corporate and Other: The operating loss for the reported quarter was 7 cents per share compared with a loss of 11 cents in the year-ago period.
Highlights of the Release
NextEra Energy’s operating income in the fourth quarter was $2,045 million, up 50.9% from $1,355 million in the year-ago period.
Interest expenses in the fourth quarter were $685 million, up 14.4% from the year-ago period.
Courtesy of Florida’s ongoing economic improvement, FPL's average number of customers in fourth-quarter 2022 increased nearly 74,000 from the prior-year period.
NextEra Energy Resources expanded the contracted renewables backlog by adding 1,700 megawatts (MW) of renewable projects during fourth-quarter 2022. NextEra Energy Resources' backlog additions include nearly 300 MW of wind projects, 730 MW of solar projects and 670 MW of battery storage projects. NextEra Energy Resources' renewables backlog now stands at approximately 19 gigawatts after placing nearly 4,600 MW into service in 2022.
Financial Update
The company had cash and cash equivalents of $1,601 million as of Dec 31, 2022 compared with $639 million on Dec 31, 2021.
Long-term debt as of Dec 31, 2022 was $55.25 billion, up from $50.96 billion on Dec 31, 2021.
Cash flow from operating activities for 2022 was $8,262 million compared with $7,553 million in the comparable prior-year period.
Guidance
NextEra Energy expects 2023 earnings in the range of $2.98-$3.13 per share. The midpoint of the range is $3.05 per share, lower than the Zacks Consensus Estimate of $3.11.
For 2024, NextEra Energy expects earnings per share in the range of $3.23-$3.43. Through 2026, NextEra Energy expects earnings per share to grow in the range of 6 to 8% per year, offsetting the 2024 adjusted earnings per share. This translates to earnings per share in the range of $3.45 to $3.70 for 2025 and $3.63 to $4.00 for 2026.
The company’s unit, Energy Resources, currently aims to add 32,700-41,800 MW of renewable power projects to its portfolio within the 2023-2026 time frame.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
Currently, NextEra has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, NextEra has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.