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Why Is NextEra Energy (NEE) Up 2.1% Since Its Last Earnings Report?
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A month has gone by since the last earnings report for NextEra Energy, Inc. (NEE - Free Report) . Shares have added about 2.1% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to its next earnings release, or is NEE 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 Misses Q4 Earnings, Ups 2018 Guidance
NextEra Energy, Inc. reported fourth-quarter 2017 adjusted earnings of $1.25 per share, lagging the Zacks Consensus Estimate of $1.31 by 4.6%. However, earnings were up 3.3% year over year.
The year-over-year growth in earnings was due to solid contribution from both Florida Power & Light Company and NextEra Energy Resources segments. The return was higher primarily due to new investments made at both segments.
On a GAAP basis, NextEra Energy recorded earnings of $4.55 per share, up from $2.06 a year ago. In addition to other one-time gain and loss, the variance between GAAP and adjusted earnings was primarily due to one-time gain of $3.95 because of the tax reforms.
Total Revenues
In the fourth quarter, NextEra Energy’s operating revenues were $4,010 million, beating the Zacks Consensus Estimate of $3,910 million by 2.6%. Reported revenues also improved 8.4% year over year.
Segmental Results
Florida Power & Light Company: Earnings came in at 84 cents per share, up 6.3% from the prior-year quarter. Revenues amounted to $2,877 million, up 12.5% from $2,558 million in the prior-year quarter.
The continued investments to strengthen its operation not only increase reliability of services but are also allow it to efficiently serve its expanding customer base.
NextEra Energy Resources: Quarterly earnings came in at 49 cents per share, up from 41 cents in the year-ago quarter. Revenues amounted to $1,134 million, up 7.8% from $1,052 million in the prior-year quarter.
Corporate and Other: Loss was 8 cents in the reported quarter compared with earnings of 1 cent in the year-ago quarter.
Highlights of the Release
In the reported quarter, NextEra Energy’s total operating expenses were down 36.1% to $3,774 million, primarily due to storm restoration costs.
Interest expenses in the reported quarter were $387 million, in line with the year-ago quarter.
In the reported quarter, Florida Power & Light Company’s total average customer count went up 55,300 year over year.
Financial Update
NextEra Energy had cash and cash equivalents of $1,714 million as of Dec 31, 2017 compared with $1,292 million as of Dec 31, 2016.
Long-term debt as of Dec 31, 2017 was $31.4 billion, up from $27.8 billion as of Dec 31, 2016.
NextEra Energy’s cash flow from operating activities in 2017 was $6,413 million compared with $6,293 million in 2016.
2018 Guidance
NextEra Energy raised its adjusted earnings guidance to the range of $7.45-$7.95 for 2018 from $6.80-$7.30 as a result of the tax reforms. The company expects earnings to witness a compound annual growth rate of 6-8% per year through 2021, off its 2018 earnings midpoint of $7.70.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimate flatlined during the past month. There has been one revision higher for the current quarter compared to one lower.
At this time, NEE has an average Growth Score of C, however its Momentum is doing a bit better with a B. However, the stock was also allocated a grade of F on the value side, putting it in the fifth quintile 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.
Our style scores indicate that the stock is more suitable for momentum investors than growth investors.
Outlook
NEE has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is NextEra Energy (NEE) Up 2.1% Since Its Last Earnings Report?
A month has gone by since the last earnings report for NextEra Energy, Inc. (NEE - Free Report) . Shares have added about 2.1% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to its next earnings release, or is NEE 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 Misses Q4 Earnings, Ups 2018 Guidance
NextEra Energy, Inc. reported fourth-quarter 2017 adjusted earnings of $1.25 per share, lagging the Zacks Consensus Estimate of $1.31 by 4.6%. However, earnings were up 3.3% year over year.
The year-over-year growth in earnings was due to solid contribution from both Florida Power & Light Company and NextEra Energy Resources segments. The return was higher primarily due to new investments made at both segments.
On a GAAP basis, NextEra Energy recorded earnings of $4.55 per share, up from $2.06 a year ago. In addition to other one-time gain and loss, the variance between GAAP and adjusted earnings was primarily due to one-time gain of $3.95 because of the tax reforms.
Total Revenues
In the fourth quarter, NextEra Energy’s operating revenues were $4,010 million, beating the Zacks Consensus Estimate of $3,910 million by 2.6%. Reported revenues also improved 8.4% year over year.
Segmental Results
Florida Power & Light Company: Earnings came in at 84 cents per share, up 6.3% from the prior-year quarter. Revenues amounted to $2,877 million, up 12.5% from $2,558 million in the prior-year quarter.
The continued investments to strengthen its operation not only increase reliability of services but are also allow it to efficiently serve its expanding customer base.
NextEra Energy Resources: Quarterly earnings came in at 49 cents per share, up from 41 cents in the year-ago quarter. Revenues amounted to $1,134 million, up 7.8% from $1,052 million in the prior-year quarter.
Corporate and Other: Loss was 8 cents in the reported quarter compared with earnings of 1 cent in the year-ago quarter.
Highlights of the Release
In the reported quarter, NextEra Energy’s total operating expenses were down 36.1% to $3,774 million, primarily due to storm restoration costs.
Interest expenses in the reported quarter were $387 million, in line with the year-ago quarter.
In the reported quarter, Florida Power & Light Company’s total average customer count went up 55,300 year over year.
Financial Update
NextEra Energy had cash and cash equivalents of $1,714 million as of Dec 31, 2017 compared with $1,292 million as of Dec 31, 2016.
Long-term debt as of Dec 31, 2017 was $31.4 billion, up from $27.8 billion as of Dec 31, 2016.
NextEra Energy’s cash flow from operating activities in 2017 was $6,413 million compared with $6,293 million in 2016.
2018 Guidance
NextEra Energy raised its adjusted earnings guidance to the range of $7.45-$7.95 for 2018 from $6.80-$7.30 as a result of the tax reforms. The company expects earnings to witness a compound annual growth rate of 6-8% per year through 2021, off its 2018 earnings midpoint of $7.70.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimate flatlined during the past month. There has been one revision higher for the current quarter compared to one lower.
NextEra Energy, Inc. Price and Consensus
NextEra Energy, Inc. Price and Consensus | NextEra Energy, Inc. Quote
VGM Scores
At this time, NEE has an average Growth Score of C, however its Momentum is doing a bit better with a B. However, the stock was also allocated a grade of F on the value side, putting it in the fifth quintile 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.
Our style scores indicate that the stock is more suitable for momentum investors than growth investors.
Outlook
NEE has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.