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Why Is NextEra Energy Partners (NEP) Down 2.6% Since Last Earnings Report?
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It has been about a month since the last earnings report for NextEra Energy Partners (NEP - Free Report) . Shares have lost about 2.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is NextEra Energy Partners due for a breakout? 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 drivers.
NextEra Energy Partners Q2 Earnings Miss Estimates
NextEra Energy Partners, LP recorded second-quarter 2024 operating earnings of 66 cents per unit, which missed the Zacks Consensus Estimate of 70 cents by 5.7%. The bottom line increased 24.5% from 53 cents in the year-ago quarter.
Revenues
The firm’s operating revenues of $360 million missed the Zacks Consensus Estimate of $367 million by 1.9%. The figure, however, increased 22.9% from $293 million registered in the prior-year period.
Highlights of the Release
Total operating expenses were $294 million, up 10.1% from the year-ago quarter’s level of $267 million. This was due to higher operations and maintenance expenses, which totaled $139 million, up 13% from the prior-year quarter’s recorded figure of $123 million.
The firm reported an operating income of $66 million compared with $26 million in the corresponding period of 2023.
Financial Condition
The firm had cash and cash equivalents of $281 million as of Jun 30, 2024, compared with $274 million as of Dec 31, 2023.
Long-term debt totaled $4.92 billion as of Jun 30, 2024, compared with $4.94 billion as of Dec 31, 2023.
Net cash provided by operating activities for the first six months of 2024 totaled $309 million compared with $296 million in the year-ago period.
Distribution Update
NEP declared a quarterly distribution of 90.5 cents per common unit to an annualized rate of $3.62 to its unit holders. This declaration reflects an annualized increase of nearly 6% from the year-earlier figure. The distribution will be payable on Aug 14, 2024, to unitholders of record as of Aug 6, 2024.
Guidance
NextEra Energy Partners continues to expect its run-rate for 2024 adjusted EBITDA to be in the $1.9-$2.1 billion range. It also anticipates CAFD to be in the band of $730-$820 million.
The firm continues to foresee 5-8% annual growth in limited partner distributions per unit, with a current target of 6% growth per year, as a reasonable range of expectations through at least 2026.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -28.61% due to these changes.
VGM Scores
At this time, NextEra Energy Partners has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, NextEra Energy Partners has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is NextEra Energy Partners (NEP) Down 2.6% Since Last Earnings Report?
It has been about a month since the last earnings report for NextEra Energy Partners (NEP - Free Report) . Shares have lost about 2.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is NextEra Energy Partners due for a breakout? 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 drivers.
NextEra Energy Partners Q2 Earnings Miss Estimates
NextEra Energy Partners, LP recorded second-quarter 2024 operating earnings of 66 cents per unit, which missed the Zacks Consensus Estimate of 70 cents by 5.7%. The bottom line increased 24.5% from 53 cents in the year-ago quarter.
Revenues
The firm’s operating revenues of $360 million missed the Zacks Consensus Estimate of $367 million by 1.9%. The figure, however, increased 22.9% from $293 million registered in the prior-year period.
Highlights of the Release
Total operating expenses were $294 million, up 10.1% from the year-ago quarter’s level of $267 million. This was due to higher operations and maintenance expenses, which totaled $139 million, up 13% from the prior-year quarter’s recorded figure of $123 million.
The firm reported an operating income of $66 million compared with $26 million in the corresponding period of 2023.
Financial Condition
The firm had cash and cash equivalents of $281 million as of Jun 30, 2024, compared with $274 million as of Dec 31, 2023.
Long-term debt totaled $4.92 billion as of Jun 30, 2024, compared with $4.94 billion as of Dec 31, 2023.
Net cash provided by operating activities for the first six months of 2024 totaled $309 million compared with $296 million in the year-ago period.
Distribution Update
NEP declared a quarterly distribution of 90.5 cents per common unit to an annualized rate of $3.62 to its unit holders. This declaration reflects an annualized increase of nearly 6% from the year-earlier figure. The distribution will be payable on Aug 14, 2024, to unitholders of record as of Aug 6, 2024.
Guidance
NextEra Energy Partners continues to expect its run-rate for 2024 adjusted EBITDA to be in the $1.9-$2.1 billion range. It also anticipates CAFD to be in the band of $730-$820 million.
The firm continues to foresee 5-8% annual growth in limited partner distributions per unit, with a current target of 6% growth per year, as a reasonable range of expectations through at least 2026.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -28.61% due to these changes.
VGM Scores
At this time, NextEra Energy Partners has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, NextEra Energy Partners has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.