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New Customers, Florida Economy to Aid NextEra (NEE) Q3 Earnings

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NextEra Energy, Inc. (NEE - Free Report) is scheduled to release its third-quarter 2023 results on Oct 24, before market open. The utility delivered an earnings surprise of 6.02% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors to Note

NextEra’s third-quarter results are likely to reflect the benefits of an improvement in Florida’s economic conditions. Florida Power & Light Company (FPL) is expected to significantly contribute to total revenues in the third quarter, like in the previous quarters. The anticipated increase in FPL’s customer base in the third quarter is likely to have a positive impact on NEE’s performance.

Contributions from ongoing investments in FPL and NextEra Energy Resources are likely to contribute to third-quarter results. The company’s cost management efforts are also expected to have boosted results in the quarter to be reported.

NextEra Energy Resources is anticipated to have another strong quarter of renewables. The addition of more renewable assets is going to boost overall operations.

Expectations

The Zacks Consensus Estimate for third-quarter earnings and revenues is pegged at 86 cents per share and $7.4 billion, respectively. Revenues and earnings per share estimates indicate year-over-year growth of 10.4% and 1.2%, respectively.

What Our Quantitative Model Predicts

Our proven model doesn’t conclusively predict an earnings beat for NextEra this time around. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. That is not the case here, as elaborated below.

NextEra Energy, Inc. Price and EPS Surprise

 

NextEra Energy, Inc. Price and EPS Surprise

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

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, NextEra carries a Zacks Rank #3.

Stocks to Consider

Investors can consider the following players from the same industry that have the right combination of elements to beat on earnings this reporting cycle.

WEC Energy Group (WEC - Free Report) is likely to beat earnings estimates when it releases third-quarter 2023 results. WEC has an Earnings ESP of +4.19% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for 2023 earnings of WEC is $4.61 per share, which indicates year-over-year growth of 3.6%.

NRG Energy (NRG - Free Report) is likely to beat earnings estimates when it releases third-quarter 2023 results. NRG has an Earnings ESP of +8.12% and a Zacks Rank #3.

The Zacks Consensus Estimate for 2023 earnings of NRG Energy is $4.51 per share, which indicates year-over-year growth of 72.14%.

Entergy (ETR - Free Report) is set to release third-quarter 2023 results on Nov 1. ETR has an Earnings ESP of +4.19% and a Zacks Rank #3.

The Zacks Consensus Estimate for 2023 earnings of Entergy is $6.71 per share, which indicates year-over-year growth of 4.52%.

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