NextEra Energy (NEE) Q2 Earnings & Revenues Surpass Estimates
NextEra Energy, Inc. NEE released second-quarter 2023 adjusted earnings of 88 cents per share, which beat the Zacks Consensus Estimate of 83 cents by 6%. The bottom line was also up 8.6% from the prior-year quarter. The year-over-year improvement was due to the solid performances of Florida Power & Light Company and NextEra Energy Resources.
GAAP earnings for the second quarter were $1.38 compared with earnings of 70 cents in the year-ago period.
Total Revenues
For the second quarter, NextEra’s operating revenues were $7,349 million, which surpassed the Zacks Consensus Estimate of $6,681 million by 10%. The top line improved 41.8% year over year.
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 (FPL): The segment’s revenues amounted to $4,774 million, up 7.9% from the prior-year figure of $4,425 million. Its earnings came in at 57 cents per share compared with 50 cents recorded a year ago.
NextEra Energy Resources: Its revenues amounted to $2,556 million, up 229.8% from the prior-year figure of $775 million. The segment’s earnings came in at 39 cents per share in comparison with 35 cents in the year-ago quarter.
Corporate and Other: Operating revenues for the reported quarter were $19 million. The operating loss in the reported quarter was 8 cents per share compared with a loss of 4 cents in the year-ago period.
Highlights of the Release
NextEra Energy’s operating income in the second quarter was $2,799 million compared with $948 million in the year-ago period.
Courtesy of Florida’s ongoing economic improvement, FPL's average number of customers in second-quarter 2023 increased nearly 66,000 from the prior-year period. During the quarter, FPL successfully executed its strategic initiatives, placing in service nearly 225 megawatts (MW) of cost-effective solar, bringing the total 2023 solar additions to 1,200 MW.
NextEra Energy Resources expanded the contracted renewables backlog by adding 1,665 megawatts (MW) of renewable projects during second-quarter 2023. Its backlog additions include nearly 150 MW of wind projects, 1,215 MW of solar projects and 300 MW of battery storage projects. The company’s renewables backlog is now at nearly 20 gigawatts.
Financial Update
The company had cash and cash equivalents of $1,577 million as of Jun 30, 2023 compared with $1,601 million on Dec 31, 2022.
Long-term debt as of Jun 30, 2023, was $60.9 billion, up from $55.25 billion on Dec 31, 2022.
Cash flow from operating activities for the first half of 2023 was $4,759 million compared with $4,793 million in the first half of the prior year.
Guidance
NextEra Energy reaffirmed 2023 earnings of $2.98-$3.13 per share. The midpoint of the range is $3.05 per share, lower than the Zacks Consensus Estimate of $3.11.
For 2024, NextEra Energy expects earnings per share of $3.23-$3.43. Through 2026, NextEra Energy expects earnings per share to grow 6-8% per year, taking the 2024 adjusted earnings per share as base. This translates to earnings per share of $3.45-$3.70 for 2025 and $3.63-$4.00 for 2026.
The company’s unit, Energy Resources, currently aims to add 32,700-41,800 MW of renewable power projects to its portfolio within the 2023-2026 period.
Zacks Rank
Currently, NextEra Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Xcel Energy XEL is scheduled to announce second-quarter 2023 results on Jul 27. The Zacks Consensus Estimate for earnings per share is pegged at 55 cents.
Xcel Energy’s long-term (three- to five-year) earnings growth is 6.4%. The Zacks Consensus Estimate for 2023 earnings per share indicates year-over-year increase of 5.4%.
WEC Energy Group WEC is set to release second-quarter 2023 results on Aug 1. The Zacks Consensus Estimate for earnings per share is pegged at 86 cents.
WEC Energy’s long-term earnings growth is projected at 5.8%. The Zacks Consensus Estimate for 2023 earnings per share indicates year-over-year growth of 3.4%.
Dominion Energy D is scheduled to announce second-quarter 2023 results on Aug 4. The Zacks Consensus Estimate for earnings is pegged at 48 cents per share.
Dominion’s long-term earnings growth is projected at 20%. The Zacks Consensus Estimate for 2023 earnings per share suggests a year-over-year decline of 11.7%.
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