Will NextEra Energy Continue Its Strong Performance in 1Q17?
NextEra Energy’s earnings
Renewables giant NextEra Energy (NEE) will report its first quarter financial results on April 21, 2017. According to analysts’ estimates, NextEra Energy is expected to clock total revenues of $4.0 billion in 1Q17. In the same quarter last year, it reported total revenues of $3.8 billion. It should be noted that NextEra Energy beat analysts’ revenue estimates in four of the past eight quarters.
Interested in NEE? Don't miss the next report.
Receive e-mail alerts for new research on NEE
NextEra Energy displayed strong revenue growth in the last several quarters mainly due to its strong focus on customer base expansion. Macroeconomic factors like employment growth, GDP growth, and housing starts have played out well in Florida—NextEra Energy’s principal operating state—in the last few quarters, which in turn helped the utility boost its customer base.
In 1Q17, heating degree days in the US were 5% lower than heating degree days in 1Q16. Milder weather might have a negative impact on utilities’ first quarter revenue.
Regulators reject Oncor deal
Regulators rejected NextEra Energy’s proposed Oncor deal on April 13, 2017, because it wouldn’t be in the public interest. After Hawaiian Electric, Oncor is NextEra Energy’s second deal that regulators vetoed in less than a year. The Oncor sale was expected to help pull Energy Future Holdings, the parent of Oncor, out of three-year bankruptcy.