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What Could Drive NextEra Energy’s 1Q17 Earnings?

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Dec. 4 2020, Updated 10:52 a.m. ET

NextEra Energy’s earnings

NextEra Energy (NEE) is estimated to report earnings of $1.53 per share for 1Q17. It reported earnings of $1.55 per share in 1Q16. NextEra Energy’s management gave EPS (earnings per share) guidance of $5.85–$6.35 for 2016.

It should be noted that NextEra Energy is one of the fastest-growing utilities in the sector. Its earnings have risen ~8% compounded annually during the past ten years. In comparison, US utilities (XLU) grew ~4% in the last few years.

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Earnings drivers

NextEra Energy’s principal regulated utility, FPL (Florida Power & Light), contributes more than 65% of its total net income. The weather and customer base growth are expected to be the most important drivers for FPL in 1Q17.

NextEra Energy’s performance for the past few quarters was stronger due to a solid performance from its utility and non-utility segments. Continued investments in regulated rate bases fortified its regulated operations, the contributions of its contracted clean energy portfolio, and its investments in natural gas pipelines—all of which recently shaped NextEra Energy’s growth.

NextEra Energy’s management gave a fiscal 2017 annual earnings guidance range of $6.35–$6.85 per share. NextEra Energy’s targeted ~8% earnings growth rate in the next few years is noteworthy because the industry targets average growth of 4%–6%.

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