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



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.

Article continues below advertisement

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.


More From Market Realist