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Why Is NextEra Energy Partners (NEP) Up 6.4% Since Last Earnings Report?
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A month has gone by since the last earnings report for NextEra Energy Partners (NEP - Free Report) . Shares have added about 6.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is NextEra Energy Partners 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 catalysts.
NextEra Energy Partners' Q1 Earnings & Sales Lag Estimates
NextEra Energy Partners, LP recorded a first-quarter 2023 operating loss per unit of 17 cents, which missed the Zacks Consensus Estimate of earnings of 31 cents by 154.84%.
Revenues
For the above-mentioned quarter, the firm’s operating revenues of $301 million missed the Zacks Consensus Estimate of $365 million by 17.6%. However, the figure improved 7.1% from the $281 million recorded in the year-ago quarter.
Highlights of the Release
NextEra Energy Partners’ total operating expenses were $298 million, up 20.6% from the year-ago quarter’s $247 million. This was due to a 19.4% increase in operating and maintenance expenses.
The firm reported an operating income of $3 million, down 91.2% from the prior-year quarter’s recorded figure of $34 million.
Financial Condition
NextEra Energy Partners had cash and cash equivalents of $238 million as of Mar 31, 2023, compared with $235 million as of Dec 31, 2022.
Long-term debt was $5,295 million as of Mar 31, 2023, compared with $5,250 million as of Dec 31, 2022.
Net cash provided by operating activities was $82 million compared with $120 million reported in the year-ago quarter.
Distribution Update
NEP declared a quarterly distribution of 84.25 cents per common unit to an annualized rate of $3.37 per common unit to its unit holders. With the declaration, the annual distribution per common unit has increased approximately 15% from the first quarter of 2022. It will be payable on May 15, 2023, to unit holders of record as of May 5, 2023.
Guidance
NextEra Energy Partners expects run-rate for adjusted EBITDA of $2.22-$2.42 billion and CAFD of $770-$860 million as of Dec 31, 2023.
The company projects 12-15% growth per year in limited partner distributions per unit, a reasonable range of expectations through at least 2026. It expects the annualized rate of fourth-quarter 2023 distribution to be $3.64-$3.74 per common unit, payable February 2024.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
The consensus estimate has shifted 13.39% due to these changes.
VGM Scores
Currently, NextEra Energy Partners has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. 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
NextEra Energy Partners has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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Why Is NextEra Energy Partners (NEP) Up 6.4% Since Last Earnings Report?
A month has gone by since the last earnings report for NextEra Energy Partners (NEP - Free Report) . Shares have added about 6.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is NextEra Energy Partners 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 catalysts.
NextEra Energy Partners' Q1 Earnings & Sales Lag Estimates
NextEra Energy Partners, LP recorded a first-quarter 2023 operating loss per unit of 17 cents, which missed the Zacks Consensus Estimate of earnings of 31 cents by 154.84%.
Revenues
For the above-mentioned quarter, the firm’s operating revenues of $301 million missed the Zacks Consensus Estimate of $365 million by 17.6%. However, the figure improved 7.1% from the $281 million recorded in the year-ago quarter.
Highlights of the Release
NextEra Energy Partners’ total operating expenses were $298 million, up 20.6% from the year-ago quarter’s $247 million. This was due to a 19.4% increase in operating and maintenance expenses.
The firm reported an operating income of $3 million, down 91.2% from the prior-year quarter’s recorded figure of $34 million.
Financial Condition
NextEra Energy Partners had cash and cash equivalents of $238 million as of Mar 31, 2023, compared with $235 million as of Dec 31, 2022.
Long-term debt was $5,295 million as of Mar 31, 2023, compared with $5,250 million as of Dec 31, 2022.
Net cash provided by operating activities was $82 million compared with $120 million reported in the year-ago quarter.
Distribution Update
NEP declared a quarterly distribution of 84.25 cents per common unit to an annualized rate of $3.37 per common unit to its unit holders. With the declaration, the annual distribution per common unit has increased approximately 15% from the first quarter of 2022. It will be payable on May 15, 2023, to unit holders of record as of May 5, 2023.
Guidance
NextEra Energy Partners expects run-rate for adjusted EBITDA of $2.22-$2.42 billion and CAFD of $770-$860 million as of Dec 31, 2023.
The company projects 12-15% growth per year in limited partner distributions per unit, a reasonable range of expectations through at least 2026. It expects the annualized rate of fourth-quarter 2023 distribution to be $3.64-$3.74 per common unit, payable February 2024.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
The consensus estimate has shifted 13.39% due to these changes.
VGM Scores
Currently, NextEra Energy Partners has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. 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
NextEra Energy Partners has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.