23 Apr

NextEra Energy Continues Its Earnings Growth Streak in Q1

WRITTEN BY Vineet Kulkarni

NEE beats estimates

Renewables titan NextEra Energy (NEE) reported its first-quarter earnings results on April 23. It posted adjusted EPS of $2.20, beating the consensus estimate.

In the comparable period last year, NextEra Energy had EPS of $1.96. NextEra Energy’s adjusted EPS rose more than 12% YoY (year-over-year) driven by consistent performances by Florida Power & Light and Energy Resources.

NextEra Energy Continues Its Earnings Growth Streak in Q1

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Earnings highlights

NextEra Energy reported total revenue of $4.08 billion in the first quarter of 2019 against its revenue of $3.86 billion in the first quarter of 2018, representing a ~5% rise YoY. Florida Power & Light, NextEra Energy’s regulated business, contributes almost two-thirds of its parent company’s total earnings. Regulatory capital employed at Florida Power & Light increased 8% YoY in the first quarter.

Florida Power & Light’s average number of customers increased by ~100,000 during the first quarter of 2019 compared to the same period last year. Florida’s economic growth remained strong during the quarter, which boosted NextEra Energy’s customer count.

NextEra Energy’s recently acquired rate-regulated subsidiary Gulf Power contributed $0.08 per share to its parent company’s earnings. Energy Resources, NEE’s competitive business segment, added 1,000 megawatts of renewables projects to its backlog during the quarter.

NextEra Energy is one of the fastest-growing utilities in the United States. Its superior earnings growth has driven its stock for the last several years. So far this year, NextEra Energy stock has risen ~10%, marginally outperforming broader utilities (XLU).

The utility has given an EPS guidance range of $8.00–$8.50 for 2019—a rise of 7% compared to 2018. Peer American Electric Power (AEP) will report its first-quarter earnings results on April 25. Read Analysts Expect Higher Earnings from AEP in Q1 2019 to learn more.

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