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NextEra Energy (NEE) Beats Q1 Earnings, Revenue Estimates

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NextEra Energy, Inc. (NEE - Free Report) reported first-quarter 2017 adjusted earnings of $1.75 per share, beating the Zacks Consensus Estimate of $1.56 by 12.2%. Reported earnings were also up by 10.1% year over year.

The year over year growth in earnings was primarily due to solid contribution from both Florida Power & Light Company and NextEra Energy Resources segments.

 

On a GAAP basis, NextEra Energy recorded first-quarter earnings of $3.37 per share, up from $1.41 a year ago. The variance between GAAP and adjusted earnings was primarily due to gain of $2.33 from the sale of fiber optic telecommunication business and 37 cents from hedges. The gains were offset by one time charges like merger related expenses of 7 cents, operating loss in Spain solar projects of 2 cents and income tax expenses of 99 cents.

Total Revenue

In the first quarter, NextEra Energy’s operating revenues were $3,972 million, surpassing the Zacks Consensus Estimate of $3,943 million by nearly 0.7%. Reported revenues also improved 3.6% from $3,835 million a year ago.

Segmental Results

Florida Power & Light Company (FPL): Earnings came in at 95 cents per share, up 11.8% from the prior-year quarter figure. Revenues amounted to $2,527 million, up 9.7% from $2,303 in the prior-year quarter.

NextEra Energy Resources (NEER): Quarterly earnings came in at 76 cents per share, up from 66 cents in the year-ago quarter. Revenues dropped 1.2% to $1,424 million.

Corporate and Other: Quarterly earnings were 4 cents compared with year ago earnings of 8 cents. Revenues in the reported quarter came in at $21 million, down 76.9%.

NextEra Energy, Inc. Price, Consensus and EPS Surprise

 

NextEra Energy, Inc. Price, Consensus and EPS Surprise | NextEra Energy, Inc. Quote

Operational Update

In the reported quarter, NextEra Energy’s total operating expenses were down 39.8% to $1,567 million primarily due to lower fuel, purchased power and interchange.

Operating income rose 94.9% to $2,405 million from $1,234 million a year ago.

Interest expenses in the reported quarter was $360 million compared with $509 million in the year ago quarter.

In the reported quarter, average price of electricity went up by 5.4% year over year and total average customer count went up by 1.3% year over year.

Financial Update

NextEra Energy had cash and cash equivalents of $600 million as of Mar 31, 2017, compared with $1,292 million as of Dec 31, 2016.

Long-term debt as of Mar 31, 2017 was $28.5 billion, up from $27.8 billion as of Dec 31, 2016.

NextEra Energy’s cash flow from operating activities in the first quarter of 2017 was $1,364 million, compared with $1,545 million in the year-ago period.

Guidance

NextEra Energy reiterated its adjusted earnings guidance in the range of $6.35–$6.85 for 2017 and $6.80–$7.30 for 2018. The company expects earnings to grow at a compound annual rate of 6% to 8% per year through 2020, off a 2016 base.

Zacks Rank

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

Upcoming Peer Releases

DTE Energy Co. (DTE - Free Report) is expected to report first-quarter 2017 results on Apr 26. The Zacks Consensus Estimate is pegged at $1.57.

Entergy Corp. (ETR - Free Report) is slated to report first-quarter 2017 results on Apr 26. The Zacks Consensus Estimate stands at $1.02.

CMS Energy Corp. (CMS - Free Report) is scheduled to report first-quarter 2017 results on May 1. The Zacks Consensus Estimate stands at 66 cents.

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