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NextEra Energy (NEE) Q3 Earnings Beat Estimates, Revenues Lag
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NextEra Energy, Inc. (NEE - Free Report) released third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%. The bottom line was also up 10.6% from the prior-year quarter. The year-over-year improvement was due to the solid performances of Florida Power & Light Company and NextEra Energy Resources.
GAAP earnings for the third quarter were 60 cents compared with earnings of 86 cents in the year-ago period.
Total Revenues
For the third quarter, NextEra’s operating revenues were $7,172 million, which lagged the Zacks Consensus Estimate of $7,453 million by 3.8%. The top line improved 6.7% year over year.
NextEra Energy, Inc. Price, Consensus and EPS Surprise
Florida Power & Light Company (“FPL”): The segment’s revenues amounted to $5,475 million, up 7.9% from the prior-year figure of $5,075 million. Its earnings came in at 58 cents per share compared with 54 cents recorded a year ago.
NextEra Energy Resources: Its revenues amounted to $1,669 million, up 1.02% from the prior-year figure of $1,652 million. The segment’s earnings came in at 43 cents per share in comparison with 37 cents in the year-ago quarter.
Corporate and Other: Operating revenues for the reported quarter were $28 million. The operating loss in the reported quarter was 7 cents per share compared with a loss of 6 cents in the year-ago period.
Highlights of the Release
NextEra Energy’s operating income in the third quarter was $1,836 million compared with $1,862 million in the year-ago period.
Courtesy of Florida’s ongoing economic improvement, FPL's average number of customers in third-quarter 2023 increased by nearly 65,000 from the prior-year period.
NextEra Energy Resources expanded its contracted renewables backlog by adding 1,485 megawatts (“MW”) of renewable projects during second-quarter 2023. Its backlog additions include nearly 400 MW of wind projects, 1,485 MW of solar projects, 905 MW of battery storage projects and 455 MW of wind repowering. The company’s renewables backlog is now nearly at 21 gigawatts.
Financial Update
The company had cash and cash equivalents of $1,568 million as of Sep 30, 2023 compared with $1,601 million on Dec 31, 2022.
Long-term debt as of Sep 30, 2023, was $59.2 billion, up from $55.25 billion on Dec 31, 2022.
Cash flow from operating activities for the first nine months of 2023 was $8,423 million compared with $7,267 million in the first nine months of the prior year.
Guidance
NextEra Energy reaffirmed 2023 earnings of $2.98-$3.13 per share. The midpoint of the range is $3.05 per share, lower than the Zacks Consensus Estimate of $3.12.
For 2024, the company expects earnings per share of $3.23-$3.43. Through 2026, NextEra Energy expects earnings per share to grow 6-8% per year, taking the 2024 adjusted earnings per share as the base. This translates to earnings per share of $3.45-$3.70 for 2025 and $3.63-$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 2023-2026.
FirstEnergy Corporation (FE - Free Report) is set to release third-quarter 2023 results on Oct 26. The Zacks Consensus Estimate for earnings per share is pegged at 86 cents.
The Zacks Consensus Estimate for 2023 earnings per share indicates year-over-year growth of 4.9%. FirstEnergy reported an average surprise of 2.2% in the last reported quarter.
Xcel Energy (XEL - Free Report) is scheduled to announce third-quarter 2023 results on Oct 27. The Zacks Consensus Estimate for earnings per share is pinned at $1.31.
Xcel Energy’s long-term (three- to five-year) earnings growth is 6.5%. The Zacks Consensus Estimate for 2023 earnings per share indicates a year-over-year increase of 5.7%.
Dominion Energy (D - Free Report) is scheduled to announce third-quarter 2023 results on Nov 3. The Zacks Consensus Estimate for earnings is pegged at 79 cents per share.
Dominion’s long-term earnings growth is projected at 4%. The Zacks Consensus Estimate for 2023 earnings per share suggests a year-over-year decline of 24.3%.
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NextEra Energy (NEE) Q3 Earnings Beat Estimates, Revenues Lag
NextEra Energy, Inc. (NEE - Free Report) released third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%. The bottom line was also up 10.6% from the prior-year quarter. The year-over-year improvement was due to the solid performances of Florida Power & Light Company and NextEra Energy Resources.
GAAP earnings for the third quarter were 60 cents compared with earnings of 86 cents in the year-ago period.
Total Revenues
For the third quarter, NextEra’s operating revenues were $7,172 million, which lagged the Zacks Consensus Estimate of $7,453 million by 3.8%. The top line improved 6.7% year over year.
NextEra Energy, Inc. Price, Consensus and EPS Surprise
NextEra Energy, Inc. price-consensus-eps-surprise-chart | NextEra Energy, Inc. Quote
Segment Results
Florida Power & Light Company (“FPL”): The segment’s revenues amounted to $5,475 million, up 7.9% from the prior-year figure of $5,075 million. Its earnings came in at 58 cents per share compared with 54 cents recorded a year ago.
NextEra Energy Resources: Its revenues amounted to $1,669 million, up 1.02% from the prior-year figure of $1,652 million. The segment’s earnings came in at 43 cents per share in comparison with 37 cents in the year-ago quarter.
Corporate and Other: Operating revenues for the reported quarter were $28 million. The operating loss in the reported quarter was 7 cents per share compared with a loss of 6 cents in the year-ago period.
Highlights of the Release
NextEra Energy’s operating income in the third quarter was $1,836 million compared with $1,862 million in the year-ago period.
Courtesy of Florida’s ongoing economic improvement, FPL's average number of customers in third-quarter 2023 increased by nearly 65,000 from the prior-year period.
NextEra Energy Resources expanded its contracted renewables backlog by adding 1,485 megawatts (“MW”) of renewable projects during second-quarter 2023. Its backlog additions include nearly 400 MW of wind projects, 1,485 MW of solar projects, 905 MW of battery storage projects and 455 MW of wind repowering. The company’s renewables backlog is now nearly at 21 gigawatts.
Financial Update
The company had cash and cash equivalents of $1,568 million as of Sep 30, 2023 compared with $1,601 million on Dec 31, 2022.
Long-term debt as of Sep 30, 2023, was $59.2 billion, up from $55.25 billion on Dec 31, 2022.
Cash flow from operating activities for the first nine months of 2023 was $8,423 million compared with $7,267 million in the first nine months of the prior year.
Guidance
NextEra Energy reaffirmed 2023 earnings of $2.98-$3.13 per share. The midpoint of the range is $3.05 per share, lower than the Zacks Consensus Estimate of $3.12.
For 2024, the company expects earnings per share of $3.23-$3.43. Through 2026, NextEra Energy expects earnings per share to grow 6-8% per year, taking the 2024 adjusted earnings per share as the base. This translates to earnings per share of $3.45-$3.70 for 2025 and $3.63-$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 2023-2026.
Zacks Rank
Currently, NextEra Energy carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
FirstEnergy Corporation (FE - Free Report) is set to release third-quarter 2023 results on Oct 26. The Zacks Consensus Estimate for earnings per share is pegged at 86 cents.
The Zacks Consensus Estimate for 2023 earnings per share indicates year-over-year growth of 4.9%. FirstEnergy reported an average surprise of 2.2% in the last reported quarter.
Xcel Energy (XEL - Free Report) is scheduled to announce third-quarter 2023 results on Oct 27. The Zacks Consensus Estimate for earnings per share is pinned at $1.31.
Xcel Energy’s long-term (three- to five-year) earnings growth is 6.5%. The Zacks Consensus Estimate for 2023 earnings per share indicates a year-over-year increase of 5.7%.
Dominion Energy (D - Free Report) is scheduled to announce third-quarter 2023 results on Nov 3. The Zacks Consensus Estimate for earnings is pegged at 79 cents per share.
Dominion’s long-term earnings growth is projected at 4%. The Zacks Consensus Estimate for 2023 earnings per share suggests a year-over-year decline of 24.3%.