What Drove NextEra Energy’s 1Q17 Earnings?
Renewables titan NextEra Energy (NEE) continued its strong performance in 1Q17. Its EPS (earnings per share) grew 10% year-over-year. It reported earnings of $1.75 per share in 1Q17—compared to earnings of $1.59 per share in the same quarter last year.
NextEra Energy stock reacted positively to its results and rose more than 1.6% on April 21, 2017.
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What drove NextEra Energy’s 1Q17 earnings?
As seen in the last several quarters, NextEra Energy’s earnings were driven mainly by its principal regulated utility—Florida Power & Light. Florida Power & Light reported earnings of $0.95 per share in 1Q17—compared to earnings of $0.85 per share in 1Q16. Florida Power & Light’s earnings were largely triggered due to its strong customer base expansion and continued investments in its rate bases. During the quarter, Florida Power & Light added 65,000 new customers and its customer base grew 1.3% compared to 1Q16.
NextEra Energy’s competitive business, NextEra Energy Resources, reported earnings of $0.76 per share—compared to EPS of $0.66 in 1Q16. NextEra Energy Resources’ earnings mainly increased due to its strong investments in wind and solar facilities. The company’s investments increased its overall contracted renewables portfolio.
NextEra Energy’s management maintained its 2017 annual earnings guidance range of $6.35–$6.85 per share. With a compound annual earnings growth target of 6%–8%, NextEra Energy is one of the fastest growing utility companies compared to peers’ (XLU) average earnings growth target of 4%–6%.
To learn more about NextEra Energy, read Why NextEra Energy Could Be a Sensible Dividend Option.