NextEra Energy (NEE) to Report Q1 Earnings: What's in Store?
NextEra Energy, Inc. NEE is scheduled to release first-quarter 2022 results on Apr 21, before the market opens. This utility delivered an earnings surprise of 2.5% in the last reported quarter.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Note
NextEra Energy’s first-quarter performance will likely reflect the benefits from an improvement in Florida’s economic conditions. NEE is expected to have benefited from the rate base settlement approved by the Florida Public Service Commission.
The expected increase in the Florida Power and Light arm’s customer base in the first quarter is expected to have boosted NextEra Energy’s performance. Smart investment in Gulf Power is likely to have lowered non-operating costs by a huge volume, thereby improving the reliability of operations and margins.
In fourth-quarter 2021, NextEra Energy’s management extended NEE’s debt maturity profile by more than six years, which in turn is expected to generate $30 million after-tax reduction in annual interest expense. This is expected to have boosted first-quarter earnings.
Expectations
The Zacks Consensus Estimate for first-quarter earnings and revenues is pegged at 68 cents per share and $5.2 billion, respectively. Earnings per share and revenue estimates indicate year-over-year growth of 1.49% and 39.64%, respectively.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for NextEra Energy this time around. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates.
NextEra Energy, Inc. Price and EPS Surprise
NextEra Energy, Inc. price-eps-surprise | NextEra Energy, Inc. Quote
Earnings ESP: The company’s Earnings ESP is -2.09%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, NextEra Energy carries a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Investors can consider the following players from the same industry that have the right combination of elements to beat on earnings this reporting cycle.
DTE Energy DTE is set to release first-quarter 2022 results on Apr 28. DTE has an Earnings ESP of +15.71% and a Zacks Rank #3.
The long-term (three to five years) earnings growth of DTE Energy is projected at 6%. The Zacks Consensus Estimate for 2022 earnings of DTE Energy is $5.94 per share, which indicates growth of 0.2% in the past 60 days.
Edison International EIX is set to release first-quarter 2022 results on May 3. EIX has an Earnings ESP of +8.94% and a Zacks Rank #3.
The long-term earnings growth of Edison International is projected at 3.9%. The Zacks Consensus Estimate for 2022 earnings of Edison International is $4.43 per share, which indicates 0.5% growth in the past 30 days.
Dominion Energy D is set to release first-quarter 2022 results on May 5. D has an Earnings ESP of +1.07% and a Zacks Rank #3.
The long-term earnings growth of Dominion Energy is projected at 6%. The Zacks Consensus Estimate for 2022 earnings of Dominion Energy is $4.12 per share, which indicates 0.2% growth in the past 30 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
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