NextEra Energy, Inc. NEE reported third-quarter 2020 adjusted earnings of $2.66 per share, which beat the Zacks Consensus Estimate of $2.65 by 0.4%. The reported earnings were also up 11.3% from $2.39 per share in the prior-year quarter. The year-over-year improvement in earnings was due to strong performance across all businesses despite the challenges created by the COVID-19 outbreak and an extremely active hurricane season.
On a GAAP basis, the company recorded earnings of $2.50 per share, up 38.1% from $1.81 reported in the year-ago quarter.
For the third quarter, NextEra Energy’s operating revenues were $4,785 million, which lagged the Zacks Consensus Estimate of $5,606 million by 14.6%. The reported revenues were also down 14.1% year over year.
NextEra Energy, Inc. Price, Consensus and EPS Surprise
NextEra Energy, Inc. price-consensus-eps-surprise-chart | NextEra Energy, Inc. Quote
Florida Power & Light Company (FPL): Revenues from the segment amounted to $3,455 million, down 1.03% from the prior-year figure of $3,491 million. The segment’s earnings came in at $1.54 per share, up 10% from $1.40 recorded in the prior-year quarter.
Gulf Power Company (Gulf Power): Total segment revenues amounted to $404 million, down 8.2% from the year-ago figure. This segment’s earnings per share totaled 18 cents for the reported quarter, up 12.5% from the year-ago level.
NextEra Energy Resources: Revenues from the segment amounted to $953 million, down 43.1% from the prior-year quarter. Quarterly earnings from the segment came in at $1.12 per share, up 16.7% from 91 cents in the year-ago quarter.
Corporate and Other: The segment’s operating loss for the reported quarter was 18 cents compared with a loss of 8 cents per share in the year-ago period.
Highlights of the Release
NextEra Energy’s arm, Gulf Power is making smart capital investments and continues to progress well. The Plant Crist coal-to- natural gas conversion and associated natural gas lateral are expected to be completed later this year, in turn supporting NextEra Energy's coal phase-out strategy and commitment to remain a clean energy leader.
During third-quarter 2020, FPL's average number of customers increased nearly 80,000 from the prior-year period.
Interest expenses for the quarter were $208 million, down 72.1% from the year-ago period.
NextEra Energy Resources expanded the contracted renewables backlog by adding 2,200 megawatts of renewable projects during the third quarter.
NextEra Energy had cash and cash equivalents of $1,961 million as of Sep 30, 2020 compared with $600 million on Dec 31, 2019.
Long-term debt as of Sep 30, 2020 was $42.79 billion, up from $37.54 billion on Dec 31, 2019.
Cash flow from operating activities for the first nine months of 2020 was $6.63 billion compared with $6.24 billion in the comparable prior-year period.
NextEra Energy recently increased financial expectations and extended long-term growth outlook. The company expects 2020 and 2021 earnings in the range of $2.18-$2.30 and $2.40-$2.54, respectively. Its earnings are expected to grow at a compound annual rate of 6-8% per year through 2023, off a 2021 base. As a result of a 4-for-1 stock split, which is going to be effective from Oct 27, 2020, the company has updated its earnings guidance.
The company expects to increase dividend by 10% each year through 2022, subject to approval of the board of directors.
NextEra Energy’s unit, Energy Resources currently aims to add 15,500-19,800 MW of renewable power projects to its portfolio within the 2019-2022 time frame.
Currently, NextEra Energy carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Electric Power AEP is scheduled to announce second-quarter 2020 results on Oct 22. The Zacks Consensus Estimate for its earnings per share for the to-be-reported quarter is pegged at $1.44.
FirstEnergy Corporation FE is scheduled to report third-quarter 2020 results on Nov 2. The Zacks Consensus Estimate for its earnings for the quarter to be reported is pegged at 75 cents per share.
Dominion Energy D is scheduled to report third-quarter 2020 results on Nov 5. The Zacks Consensus Estimate for its earnings for the quarter to be reported is pegged at $1.05 per share.
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