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Why Is NextEra (NEE) Up 0.2% Since Last Earnings Report?
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It has been about a month since the last earnings report for NextEra Energy (NEE - Free Report) . Shares have added about 0.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is NextEra due for a pullback? 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 Q1 Earnings & Revenues Surpass Estimates
NextEra Energy, Inc. released first-quarter 2023 adjusted earnings of 84 cents per share, which beat the Zacks Consensus Estimate of 75 cents by 12%. The bottom line was also up 13.5% from the prior-year quarter. The year-over-year improvement was due to the solid performance of Florida Power & Light Company and NextEra Energy Resources.
GAAP earnings for the first quarter were $1.04 compared with earnings of 23 cents in the year-ago period.
Total Revenues
For the first quarter, NextEra’s operating revenues were $6,716 million, which surpassed the Zacks Consensus Estimate of $5,777 million by 16.2%. The top line improved 132.4% year over year.
Segment Results
Florida Power & Light Company (FPL): First-quarter revenues amounted to $3,919 million, up 5.6% from the prior-year figure of $3,712 million. Segmental earnings came in at 53 cents per share compared with 44 cents recorded a year ago.
NextEra Energy Resources: First-quarter earnings came in at 36 cents per share in comparison with 32 cents in the year-ago quarter.
Corporate and Other: Operating revenues for the reported quarter were $5 million. The operating loss in the reported quarter was 5 cents per share compared with a loss of 2 cents in the year-ago period.
Highlights of the Release
NextEra Energy’s operating income in the first quarter was $2,942 million against the loss of $775 million in the year-ago period.
Courtesy of Florida’s ongoing economic improvement, FPL's average number of customers in first-quarter 2023 increased nearly 65,000 from the prior-year period.
NextEra Energy Resources expanded the contracted renewables backlog by adding 2,020 megawatts (MW) of renewable projects during first-quarter 2023. NextEra Energy Resources' backlog additions include nearly 200 MW of wind projects, 1,370 MW of solar projects and 450 MW of battery storage projects. NextEra Energy Resources' renewables backlog now stands at approximately 20.4 gigawatts.
Financial Update
The company had cash and cash equivalents of $2,275 million as of Mar 31, 2023 compared with $1,601 million on Dec 31, 2022.
Long-term debt as of Mar 31, 2023, was $59 billion, up from $55.25 billion on Dec 31, 2022.
Cash flow from operating activities for first-quarter 2023 was $1,673 million compared with $1,962 million in the comparable prior-year period.
Guidance
NextEra Energy reaffirmed 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, taking the 2024 adjusted earnings per share as base. 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 period.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
At this time, NextEra has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, 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
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.
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Why Is NextEra (NEE) Up 0.2% Since Last Earnings Report?
It has been about a month since the last earnings report for NextEra Energy (NEE - Free Report) . Shares have added about 0.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is NextEra due for a pullback? 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 Q1 Earnings & Revenues Surpass Estimates
NextEra Energy, Inc. released first-quarter 2023 adjusted earnings of 84 cents per share, which beat the Zacks Consensus Estimate of 75 cents by 12%. The bottom line was also up 13.5% from the prior-year quarter. The year-over-year improvement was due to the solid performance of Florida Power & Light Company and NextEra Energy Resources.
GAAP earnings for the first quarter were $1.04 compared with earnings of 23 cents in the year-ago period.
Total Revenues
For the first quarter, NextEra’s operating revenues were $6,716 million, which surpassed the Zacks Consensus Estimate of $5,777 million by 16.2%. The top line improved 132.4% year over year.
Segment Results
Florida Power & Light Company (FPL): First-quarter revenues amounted to $3,919 million, up 5.6% from the prior-year figure of $3,712 million. Segmental earnings came in at 53 cents per share compared with 44 cents recorded a year ago.
NextEra Energy Resources: First-quarter earnings came in at 36 cents per share in comparison with 32 cents in the year-ago quarter.
Corporate and Other: Operating revenues for the reported quarter were $5 million. The operating loss in the reported quarter was 5 cents per share compared with a loss of 2 cents in the year-ago period.
Highlights of the Release
NextEra Energy’s operating income in the first quarter was $2,942 million against the loss of $775 million in the year-ago period.
Courtesy of Florida’s ongoing economic improvement, FPL's average number of customers in first-quarter 2023 increased nearly 65,000 from the prior-year period.
NextEra Energy Resources expanded the contracted renewables backlog by adding 2,020 megawatts (MW) of renewable projects during first-quarter 2023. NextEra Energy Resources' backlog additions include nearly 200 MW of wind projects, 1,370 MW of solar projects and 450 MW of battery storage projects. NextEra Energy Resources' renewables backlog now stands at approximately 20.4 gigawatts.
Financial Update
The company had cash and cash equivalents of $2,275 million as of Mar 31, 2023 compared with $1,601 million on Dec 31, 2022.
Long-term debt as of Mar 31, 2023, was $59 billion, up from $55.25 billion on Dec 31, 2022.
Cash flow from operating activities for first-quarter 2023 was $1,673 million compared with $1,962 million in the comparable prior-year period.
Guidance
NextEra Energy reaffirmed 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, taking the 2024 adjusted earnings per share as base. 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 period.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
At this time, NextEra has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, 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
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.