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NextEra (NEE) Up 7.5% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for NextEra Energy (NEE - Free Report) . Shares have added about 7.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is NextEra 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 Q2 Earnings Surpass Estimates, Sales Lag
NextEra Energy, Inc. reported second-quarter 2024 adjusted earnings of 96 cents per share, which beat the Zacks Consensus Estimate of 93 cents by 3.2%. The bottom line was also up nearly 9.1% year over year. The uptick was driven by the solid performance of Florida Power & Light Company and NextEra Energy Resources.
GAAP earnings per share for the second quarter were 79 cents compared with $1.38 in the year-ago period.
Total Revenues
In the second quarter, NextEra Energy’s operating revenues were $6.06 billion, which lagged the Zacks Consensus Estimate of $7.26 billion by 16.8%. The top line plunged 17.4% year over year.
Segment Results
Florida Power & Light Company : The segment’s revenues amounted to nearly $4.38 billion, down 8.1% from the prior-year figure of $4.77 billion. Its earnings came in at 60 cents per share compared with 57 cents recorded a year ago.
NextEra Energy Resources: Its revenues amounted to $2.56 billion, down 27.2% from the prior-year figure of $3.5 billion. The segment’s earnings came in at 42 cents per share in comparison with 39 cents in the year-ago quarter.
Corporate and Other: Operating revenues for the reported quarter were $35 million. The operating loss in the second quarter was 6 cents per share, narrower than the year-ago loss of 8 cents.
Highlights of the Release
Florida Power & Light continued to execute against its capital plan and deliver outstanding value to its customers in Florida. Through the segment’s generation modernization efforts and solar portfolio build-out, Florida Power & Light has saved its customers nearly $16 billion in fuel costs since 2001.
NextEra Energy Resources expanded its contracted renewables backlog by adding 3,015 MW of renewable projects in the quarter under discussion. Its backlog additions include nearly 820 MW of wind projects, 1,455 MW of solar projects, 530MW of battery storage projects and 210 MW of wind repowering. The company’s renewables backlog is now nearly 22.6 gigawatts.
Financial Update
NextEra Energy had cash and cash equivalents of nearly $1.55 billion as of Jun 30, 2024, compared with $2.7 billion on Dec 31, 2023.
Long-term debt, as of Jun 30, 2024, was $68.5 billion, up from $61.4 billion on Dec 31, 2023.
Cash flow from operating activities in first-half 2024 was $7 billion compared with $4.8 billion in the prior-year quarter.
Guidance
NextEra Energy reaffirmed 2024 earnings guidance in the range of $3.23-$3.43 per share. The midpoint of the guided range is $3.33 per share, lower than the Zacks Consensus Estimate of $3.40.
For 2025, the company expects earnings per share of $3.45-$3.70. 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 $3.63-$4 for 2026.
The company’s unit, Energy Resources, currently aims to add 36,500-45,500 MW of renewable power projects to its portfolio in the 2024-2027 span.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
At this time, NextEra has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, NextEra has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
NextEra is part of the Zacks Utility - Electric Power industry. Over the past month, Avangrid (AGR - Free Report) , a stock from the same industry, has gained 1.2%. The company reported its results for the quarter ended June 2024 more than a month ago.
Avangrid reported revenues of $1.92 billion in the last reported quarter, representing a year-over-year change of +21.2%. EPS of $0.49 for the same period compares with $0.21 a year ago.
Avangrid is expected to post earnings of $0.33 per share for the current quarter, representing a year-over-year change of +22.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +10%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Avangrid. Also, the stock has a VGM Score of C.
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NextEra (NEE) Up 7.5% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for NextEra Energy (NEE - Free Report) . Shares have added about 7.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is NextEra 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 Q2 Earnings Surpass Estimates, Sales Lag
NextEra Energy, Inc. reported second-quarter 2024 adjusted earnings of 96 cents per share, which beat the Zacks Consensus Estimate of 93 cents by 3.2%. The bottom line was also up nearly 9.1% year over year. The uptick was driven by the solid performance of Florida Power & Light Company and NextEra Energy Resources.
GAAP earnings per share for the second quarter were 79 cents compared with $1.38 in the year-ago period.
Total Revenues
In the second quarter, NextEra Energy’s operating revenues were $6.06 billion, which lagged the Zacks Consensus Estimate of $7.26 billion by 16.8%. The top line plunged 17.4% year over year.
Segment Results
Florida Power & Light Company : The segment’s revenues amounted to nearly $4.38 billion, down 8.1% from the prior-year figure of $4.77 billion. Its earnings came in at 60 cents per share compared with 57 cents recorded a year ago.
NextEra Energy Resources: Its revenues amounted to $2.56 billion, down 27.2% from the prior-year figure of $3.5 billion. The segment’s earnings came in at 42 cents per share in comparison with 39 cents in the year-ago quarter.
Corporate and Other: Operating revenues for the reported quarter were $35 million. The operating loss in the second quarter was 6 cents per share, narrower than the year-ago loss of 8 cents.
Highlights of the Release
Florida Power & Light continued to execute against its capital plan and deliver outstanding value to its customers in Florida. Through the segment’s generation modernization efforts and solar portfolio build-out, Florida Power & Light has saved its customers nearly $16 billion in fuel costs since 2001.
NextEra Energy Resources expanded its contracted renewables backlog by adding 3,015 MW of renewable projects in the quarter under discussion. Its backlog additions include nearly 820 MW of wind projects, 1,455 MW of solar projects, 530MW of battery storage projects and 210 MW of wind repowering. The company’s renewables backlog is now nearly 22.6 gigawatts.
Financial Update
NextEra Energy had cash and cash equivalents of nearly $1.55 billion as of Jun 30, 2024, compared with $2.7 billion on Dec 31, 2023.
Long-term debt, as of Jun 30, 2024, was $68.5 billion, up from $61.4 billion on Dec 31, 2023.
Cash flow from operating activities in first-half 2024 was $7 billion compared with $4.8 billion in the prior-year quarter.
Guidance
NextEra Energy reaffirmed 2024 earnings guidance in the range of $3.23-$3.43 per share. The midpoint of the guided range is $3.33 per share, lower than the Zacks Consensus Estimate of $3.40.
For 2025, the company expects earnings per share of $3.45-$3.70. 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 $3.63-$4 for 2026.
The company’s unit, Energy Resources, currently aims to add 36,500-45,500 MW of renewable power projects to its portfolio in the 2024-2027 span.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
At this time, NextEra has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, NextEra has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
NextEra is part of the Zacks Utility - Electric Power industry. Over the past month, Avangrid (AGR - Free Report) , a stock from the same industry, has gained 1.2%. The company reported its results for the quarter ended June 2024 more than a month ago.
Avangrid reported revenues of $1.92 billion in the last reported quarter, representing a year-over-year change of +21.2%. EPS of $0.49 for the same period compares with $0.21 a year ago.
Avangrid is expected to post earnings of $0.33 per share for the current quarter, representing a year-over-year change of +22.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +10%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Avangrid. Also, the stock has a VGM Score of C.