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Florida Economy, Customer Base to Aid NextEra (NEE) Q2 Earnings

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NextEra Energy, Inc. (NEE - Free Report) is scheduled to release its second-quarter 2023 results on Jul 25 before market open. The utility delivered an earnings surprise of 12% 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 second-quarter results are likely to reflect the benefits of an improvement in Florida’s economic conditions. Florida Power & Light Company (FPL) is expected to be a major contributor to total revenues in the second quarter, like in previous quarters. The expected increase in the FPL customer base in the second quarter is likely to have a positive impact on NEE’s performance.

Contributions from new investments in FPL and NextEra Energy Resources are likely going to contribute to second-quarter results. The cost management efforts are also likely to have boosted results in the quarter to be reported.

NextEra Energy Resources is anticipated to have another strong quarter of renewables. The closure of acquisitions in first-quarter and the addition of more renewable assets are going to boost overall operations.

Expectations

The Zacks Consensus Estimate for second-quarter earnings and revenues is pegged at 80 cents per share and $6.7 billion, respectively. Revenue estimates indicate year-over-year growth of 29.2%, while earnings estimates reflect a year-over-year decline of 1.2%.

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 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 +2.08%. 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 #2. 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 beat on earnings this reporting cycle.

Edison International (EIX - Free Report) is set to release second-quarter 2023 results on Jul 27. EIX has an Earnings ESP of +4.63% and a Zacks Rank #3.

The Zacks Consensus Estimate for 2023 earnings of EIX is $4.72 per share, which indicates year-over-year growth of 2.16%.

Public Service Enterprise Group (PEG - Free Report) is set to release second-quarter 2023 results on Aug 1. PEG has an Earnings ESP of +15.20% and a Zacks Rank #2.

The Zacks Consensus Estimate for 2023 earnings of Public Service Enterprise is $3.44 per share, remaining unchanged in the past 60 days.

Entergy (ETR - Free Report) is set to release second-quarter 2023 results on Aug 2. ETR has an Earnings ESP of +1.14% and a Zacks Rank #2.

The Zacks Consensus Estimate for 2023 earnings of Entergy is $6.67 per share, which indicates a year-over-year growth of 3.89%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 

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