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NextEra Energy (NEE) Lags Q4 Earnings & Revenue Estimates

Jewel Saha

NextEra Energy, Inc. NEE reported fourth-quarter 2019 adjusted earnings of $1.44 per share, lagging the Zacks Consensus Estimate of $1.54 by 6.5%. In addition, the reported earnings were down 3.4% from $1.49 per share in the prior-year quarter.

On a GAAP basis, NextEra Energy recorded earnings of $1.99 per share, up 126.1% from 88 cents reported in the year-ago quarter.

Total Revenues

In the fourth quarter, NextEra Energy’s operating revenues were $4,588 million, lagging the Zacks Consensus Estimate of $4,793 million by 4.3%. However, the reported revenues were up 4.5% year over year.

NextEra Energy, Inc. Price, Consensus and EPS Surprise

NextEra Energy, Inc. Price, Consensus and EPS Surprise

NextEra Energy, Inc. price-consensus-eps-surprise-chart | NextEra Energy, Inc. Quote

 

Segment Results

Florida Power & Light Company: Revenues from the segment amounted to $2,925 million, down 0.3% from the prior-year figure of $2,935 million. The segment’s earnings came in at 81 cents per share, down 4.7% from 85 cents recorded in the prior-year quarter.

Gulf Power Company: Total segment revenues amounted to $353 million. This segment’s earnings per share totaled 5 cents in the reported quarter.

NextEra Energy Resources: Revenues from the segment amounted to $1,338 million, down 10.1% from the prior-year quarter. Quarterly earnings from the segment came in at 66 cents per share, up 1.5% from 67 cents in the year-ago quarter.

Corporate and Other: The segment’s operating loss in the reported quarter was 8 cents versus earnings of 3 cents per share in the year-ago period.
 
Highlights of the Release

In the reported quarter, NextEra Energy’s total operating expenses were up 13% from the prior-year level to $3,710 million.

Interest expenses in the quarter were $188 million, down 73.5% from the year-ago period.

In the reported quarter, Florida Power & Light Company’s total average customer count was up 100,000 on a year-over-year basis.

NextEra Energy Resources expanded the contracted renewables backlog by adding 5,800 MW of renewable projects during 2019.

Financial Update

NextEra Energy had cash and cash equivalents of $600 million as of Dec 31, 2019 compared with $638 million on Dec 31, 2018.

Long-term debt as of Dec 31, 2019 was $37.54 billion, up from $26.78 billion on Dec 31, 2018.

Cash flow from operating activities in 2019 was $8.15 billion compared with $6.59 billion in 2018.

Guidance
 
NextEra Energy reiterated its long-term earnings growth guidance. The company’s earnings are expected to grow at a compound annual rate of 6-8% per year through 2021, off its base of $7.70 in 2018. NextEra Energy expects 2022 adjusted earnings per share in the range of $10-$10.75, indicating 6-8% growth from 2021 EPS.

The firm currently aims to add 11,500-18,500 MW of renewable power projects to its portfolio within the 2019-2022 time frame.

Zacks Rank

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

Upcoming Releases

Exelon Corp. EXC is slated to report fourth-quarter 2019 results on Feb 11. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is pegged at 72 cents per share.

Dominion Energy D is scheduled to report fourth-quarter 2019 results on Feb 11. The Zacks Consensus Estimate for earnings for the quarter to be reported is pegged at $1.19 cents per share.

American Electric Power AEP is scheduled to announce fourth-quarter 2019 results on Feb 20. The Zacks Consensus Estimate for earnings per share for the to-be-reported quarter is pegged at 59 cents.

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