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Will NextEra Energy Report Higher Revenues in Q2 2018?

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NEE to report on July 25

Renewables titan NextEra Energy (NEE) is planning to report its second-quarter 2018 financial results on July 25. According to Wall Street analyst consensus, NextEra Energy is expected to report total revenues of $4.6 billion for the second quarter. In the same quarter last year, it reported total revenues of $4.4 billion.

NEE rev

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Revenue drivers

Florida Power & Light (or FPL), NextEra Energy’s principal subsidiary in the state, reported an annual customer base growth of more than 1.0% last year, higher than its peers. The state’s relatively rapid economic growth has helped expand NextEra Energy’s customer base. 

Expanding the customer base has become vital for US utilities in the last few years, as initiatives to improve energy efficiency dented the electricity consumption per customer. FPL generates more than two-thirds of NextEra Energy’s total revenues. NextEra Energy possesses a territorial monopoly in Florida—the third most populous state in the country.

The largest utility by market capitalization, NextEra Energy stock has been one of the most rallied stocks among the S&P 500 Utilities Index (XLU). Better-than-expected quarterly earnings have most likely influenced the utility’s market performance in the last few years. So far this year, NextEra Energy stock has rallied 10.0%, beating the utilities sector at large (XLU).

NextEra Energy’s peer and second-largest utility by market capitalization, Duke Energy (DUK) plans to report its second-quarter earnings on August 8. Southern Company (SO) also expects to report its quarterly results on August 8.

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