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NextEra (NEE) Beats Q1 Earnings Estimates, Adds New Customers

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NextEra Energy, Inc. NEE reported first-quarter 2021 adjusted earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 60 cents by 11.7%. The bottom line was also up 13.6% from 59 cents per share in the prior-year quarter.

This year-over-year improvement was owing to solid performance of all businesses and expansion of its customer base.

On a GAAP basis, the company recorded earnings of 84 cents compared with 21 cents per share in the year-ago quarter.

Total Revenues

For the first quarter, NextEra’s operating revenues were $3,726 million, which lagged the Zacks Consensus Estimate of $4,742 million by 21.4%. The top line also dipped 19.2% year over year.

NextEra Energy, Inc. Price, Consensus and EPS Surprise

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 (FPL): Revenues amounted to $2,623 million, up 3.3% from the prior-year figure of $2,540 million. Segmental earnings came in at 37 cents per share, up 12.1% from 33 cents recorded a year ago.

Gulf Power Company (Gulf Power): Total revenues came in at $347 million, up 5.8% from the year-earlier figure. Earnings per share totaled 3 cents for the reported quarter, up 50% from the year-ago level.

NextEra Energy Resources: Revenues summed $781 million, down 55.9% from the prior-year quarter. Quarterly earnings came in at 30 cents per share compared with 27 cents in the year-ago quarter.

Corporate and Other: Operating loss for the reported quarter was 3 cents per share from this segment, on par with the year-ago period.

Highlights of the Release

Effective Jan 1, 2021, Gulf Power merged into FPL. Gulf Power will continue as a separate reporting segment of Florida Power & Light and NextEra Energy through 2021, serving its existing customers under separate retail rates.

For first-quarter 2021, FPL's average number of customers increased nearly 71,400 from the prior-year period.

During the quarter, the company invested $1,350 million in the FPL unit and $170 million in the Gulf Power unit to strengthen its existing infrastructure and increase operational resilience.

NextEra Energy Resources expanded the contracted renewables backlog by adding 1,750 megawatts of renewable projects during the March quarter.

Financial Update

The company had cash and cash equivalents of $1,462 million as of Mar 31, 2021 compared with $1,105 million on Dec 31, 2020.

Long-term debt as of Mar 31, 2021 was $46.06 billion, up from $41.94 billion on Dec 31, 2020.

Cash flow from operating activities for first-quarter 2021 was $1,292 million compared with $1,894 million in the prior-year period.

Guidance

NextEra Energy expects 2021 earnings in the range of $2.40-$2.54 per share. The metric is projected to see a CAGR of 6-8% per year through 2023, off a 2021 base. As a result, its earnings per share guidance range for 2022 and 2023 is estimated at $2.55-$2.75 and $2.77-$2.97, respectively.

The company’s unit, Energy Resources currently aims to add 22,675-30,000 MW of renewable power projects to its portfolio within the 2021-2024 time frame.

Zacks Rank

Currently, NextEra carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

FirstEnergy Corporation FE is scheduled to announce first-quarter 2021 results on Apr 22. The Zacks Consensus Estimate for earnings per share is pegged at 73 cents.

Xcel Energy XEL is scheduled to announce first-quarter 2021 results on Apr 29. The Zacks Consensus Estimate for earnings per share is pegged at 61 cents.

Dominion Energy D is scheduled to announce first-quarter 2021 results on May 4. The Zacks Consensus Estimate for earnings per share is pegged at $1.08.

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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report

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