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NextEra Energy (NEE) to Report Q4 Earnings: What to Expect

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NextEra Energy, Inc. (NEE - Free Report) is scheduled to release fourth-quarter 2020 results on Jan 26, before the market opens. This utility delivered an earnings surprise of 0.4% in the last reported quarter.

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

Factors to Note

NextEra Energy’s fourth-quarter results will likely reflect the impact of post-split share count. In the fourth quarter, the company took initiatives to redeem hybrid securities and carried out other potential refinancing activities to take advantage of the low interest rate environment, which is likely to have a negative impact of 20 cents on earnings.

Despite the adverse impact on demand due to the pandemic outbreak, it continued to carry out major initiatives, including generation of electricity from renewable assets. Ongoing recovery of the Florida economy from the pandemic impact and the addition of new business are likely to have had a positive impact on demand and fourth-quarter earnings of NextEra Energy.

Expectations

The Zacks Consensus Estimate for fourth-quarter earnings and revenues is pegged at 39 cents per share and $4.94 billion, respectively. The projected revenues and earnings indicate an improvement of 7.7% and 8.3%, respectively, from the year-ago reported figures.

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for NextEra Energy 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 the case here as you will see 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 +0.64%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, NextEra Energy carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Investors can also consider the following players from the same industry that too have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Xcel Energy (XEL - Free Report) is set to release fourth-quarter 2020 results on Jan 28. It has an Earnings ESP of +1.82% and a Zacks Rank #3.

American Electric Power (AEP - Free Report) is set to release fourth-quarter 2020 results on Feb 25. It has an Earnings ESP of +1.88% and a Zacks Rank #3.

PG&E Corporation (PCG - Free Report) is set to release fourth-quarter 2020 results on Feb 25. It has an Earnings ESP of +10.53% and a Zacks Rank #3.

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