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Top Utilities’ Earnings Outlook and Growth Prospects

Vincent Kruger
Top Utilities’ Earnings Outlook and Growth Prospects

Utilities at large (XLU) are aiming for an earnings growth of 4%–6% annually for the next few years. In comparison, NextEra Energy (NEE), the fastest-growing top utility, aims to increase its EPS by 6%–8% through 2021. NextEra Energy’s healthy combination of regulated and competitive operations and unmatchable renewables portfolio drove its earnings in the last few years. The planned asset sale of Southern Company’s (SO) assets is expected to make NextEra Energy’s footprint even stronger in Florida.