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NextEra Energy (NEE) Beats Q3 Earnings, Guidance Unchanged

NextEra Energy, Inc.NEE reported third-quarter 2017 adjusted earnings of $1.85 per share, beating the Zacks Consensus Estimate of $1.75 by 5.7%. Reported earnings were also up 6.3% year over year.

The year-over-year growth in earnings was due to solid contribution from both Florida Power & Light Company and NextEra Energy Resources segments. The return was higher, primarily due to new investments made at both segments.

On a GAAP basis, NextEra Energy recorded earnings of $1.79 per share, up from $1.62 a year ago. The variance between GAAP and adjusted earnings was primarily due to loss of 13 cents from non-qualifying hedges and merger related expenses of 1 cent. The loss was offset by a one-time gain of 4 cents from income tax expenses, income of 2 cents from Spanish solar projects and 2 cents from other one-time gains.

Total Revenues

In the third quarter, NextEra Energy’s operating revenues were $4,808 million, lagging the Zacks Consensus Estimate of $4,893 million by nearly 1.7%. Reported revenues improved marginally by $3 million from the year-ago quarter.

NextEra Energy, Inc. Price, Consensus and EPS Surprise
 

NextEra Energy, Inc. Price, Consensus and EPS Surprise | NextEra Energy, Inc. Quote

Segmental Results

Florida Power & Light Company: Earnings came in at $1.19 per share, up 7.2% from the prior-year quarter. Revenues amounted to $3,477 million, up 5.9% from $3,283 in the prior-year quarter.

The continued investments to strengthen its operation not only increase reliability of services but is also allow it to efficiently serve its expanding customer base.

NextEra Energy Resources: Quarterly earnings came in at 62 cents per share, up from 60 cents in the year-ago quarter.
 
Corporate and Other: Quarterly earnings increased 1 cent to 4 cents from the year-ago quarter earnings of 3 cents per share.
 
Highlights of the Release

In the reported quarter, NextEra Energy’s total operating expenses were down 3.3% to $3,409 million, primarily due to lower fuel, purchased power and interchange expenses.

Florida Power & Light Company’s total energy sales in the reported quarter totaled 34,017 million kWh, down 3% from the year-ago quarter level of 35,064 kWh. This could be due to the outages caused by Hurricane Irma.

Operating income rose 9.4% to $1,399 million from $1,279 million a year ago.

Interest expenses in the reported quarter were $381 million, up 3.3% from $369 million in the year-ago quarter.

In the reported quarter, Florida Power & Light Company’s average price of electricity went up 10.4% year over year and total average customer count went up 1.3% year over year.

Financial Update

NextEra Energy had cash and cash equivalents of $1,381 million as of Sep 30, 2017 compared with $1,292 million as of Dec 31, 2016.

Long-term debt as of Sep 30, 2017 was $30.4 billion, up from $27.8 billion as of Dec 31, 2016.

NextEra Energy’s cash flow from operating activities in the first nine months of 2017 was $5,160 million compared with $5,294 million in the year-ago period.

Guidance

NextEra Energy reiterated its adjusted earnings guidance in the range of $6.35-$6.85 for 2017 and $6.80-$7.30 for 2018. The company expects earnings to witness a compound annual growth rate of 6-8% per year through 2020, off a 2016 base.

Zacks Rank

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

Peer Releases

Xcel Energy XEL reported third-quarter 2017 adjusted earnings of 97 cents per share, beating the Zacks Consensus Estimate of 92 cents by 5.4%.

DTE Energy DTE reported third-quarter 2017 earnings of $1.48 per share, lagging the Zacks Consensus Estimate of $1.53 by 3.3%.

WEC Energy Group WEC reported third-quarter 2017 operational earnings of 68 cents per share, beating the Zacks Consensus Estimate of 67 cents by 1.5%.

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WEC Energy Group, Inc. (WEC): Free Stock Analysis Report
 
Xcel Energy Inc. (XEL): Free Stock Analysis Report
 
NextEra Energy, Inc. (NEE): Free Stock Analysis Report
 
DTE Energy Company (DTE): Free Stock Analysis Report
 
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