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NextEra Energy Partners' (NEP) Q1 Earnings Outpace Estimates

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NextEra Energy Partners, LP (NEP - Free Report) delivered earnings of $2.66 per unit for the first quarter of 2021, beating the Zacks Consensus Estimate of 39 cents by 582.1%. Also, the firm’s earnings reversed the year-ago quarter’s loss of $3.39.

Revenues

In the quarter under review, the firm’s revenues of $246 million missed the Zacks Consensus Estimate of $295 million by 16.6%. However, the top line improved16% on a year-over-year basis.

NextEra Energy Partners, LP Price, Consensus and EPS Surprise

NextEra Energy Partners, LP Price, Consensus and EPS Surprise

NextEra Energy Partners, LP price-consensus-eps-surprise-chart | NextEra Energy Partners, LP Quote

Highlights of the Release

In the March quarter, NextEra Energy Partners’ total net operating expenses were $168 million, up 3.1% from the year-ago quarter’s $163 million.

In the same period, the partnership’s operating income summed $78 million, up 59.2% from $49 million in the year-ago quarter.

Financial Condition

NextEra Energy Partners had cash and cash equivalents worth $110 million as of Mar 31, 2021 compared with $108 million as of Dec 31, 2020.

Long-term debt was $3,541 million as of Mar 31, 2021 compared with $3,376 million as of Dec 31, 2020.

Net cash provided by operating activities in the first three months of 2021 was $104 million, higher than $99 million in the comparable period last year.

Distribution Update

The firm announced the quarterly distribution of 63.75 cents per unit payable May 14 to its unitholders of record as of May 6. This brings the annualized rate to $2.55 per unit, marking a 15% hike on a yearly basis.

Guidance

For 2021, the firm expects the run rate for cash available for distribution (CAFD) in the upper end of the range of $600-$680 million. It also expects adjusted EBITDA in the upper end of its previously anticipated band of $1.44-$1.62 billion.

The partnership continues to expect 12-15% per year growth for limited partner distributions through 2024.

Zacks Rank

NextEra Energy Partners currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stocks to Consider

Here are a few stocks from the same sector that have the right combination of elements to beat on earnings in the upcoming releases:

Evergy Inc. (EVRG - Free Report) is scheduled to release first-quarter 2021 results on May 6, 2021. The Zacks Consensus Estimate for 2021 earnings has moved 2.2% north in the past 60 days.

Ormat Technologies Inc. (ORA - Free Report) is likely to come up with an earnings beat when it reports first-quarter results on May 5, 2021. The Zacks Consensus Estimate for 2021 earnings has been revised 4.5% upward in the past 60 days.

EOG Resources (EOG - Free Report) is expected to deliver an earnings beat when it reports first-quarter results on May 7, 2021. The Zacks Consensus Estimate for 2021 earnings has moved 70.8% up in the past 60 days.

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