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NextEra Energy Missed Q4 2018 Estimates, but Profits Were Up 20%

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2018 profit up ~15%

NextEra Energy, the biggest utility by market cap, reported its earnings for the fourth quarter and the full year today. It reported adjusted earnings of $1.49 per share, missing consensus estimates for the quarter ended December 31, 2018. In Q4 2017, it reported earnings of $1.24 per share. NextEra Energy’s revenues during the quarter came in at $4.39 billion, missing consensus estimates, which implies revenue growth of approximately 10% year-over-year.

NEE stk

NextEra Energy has been reporting stellar earnings growth for the last several years. NextEra Energy stock has increased ~18% over the past year, while broader utilities (XLU) increased 5% during the same period.

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Earnings highlights

NextEra Energy’s principal regulated utility, Florida Power and Light (or FPL), continued to drive the parent’s earnings. It reported adjusted net income of $407 million in Q4 2018 compared to net income of $394 million in Q4 2017. FPL’s average number of customers rose 71,000 in Q4 2018 YoY.

NextEra Energy’s competitive segment, NextEra Energy Resources, reported earnings of $317 million in Q4 2018, an increase of ~38% YoY. For the full year 2018, NextEra Energy posted adjusted EPS of $7.70, reporting annual growth of 15% compared to 2017. The utility has given an earnings guidance range of $8.00 to $8.50 per share for 2019, an increase of 7% compared to 2018.

Renewables giant NextEra Energy is one of the fastest growing among utilities. Driven by its superior earnings, NextEra has shown above-average dividend growth in the last few years.

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