NextEra Energy’s Q1 Results: Fresh Upside for the Stock?



NextEra Energy

NextEra Energy (NEE) is scheduled to release its first-quarter earnings on April 23. According to the consensus estimates, the company will report total revenues of $4.31 billion for the quarter ending March 31. In the same quarter last year, the company reported revenues of $3.86 billion, which indicates revenue growth of ~12% YoY (year-over-year).

NEE rev

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NextEra Energy has been posting solid earnings growth for the last several quarters. NextEra Energy’s regulated utility Florida Power & Light and its renewables fleet at NextEra Energy Resources contributed to the company’s earnings. So far, NextEra Energy stock has risen ~9% in 2019. The stock has mirrored broader utilities (XLU).

Revenue drivers

NextEra Energy completed the Gulf Power acquisition in January. Following the acquisition, the customer base increased by ~0.5 million. The increased customer base is expected to add almost $1.5 billion to NextEra Energy’s revenues annually. Florida Power & Light, NextEra Energy’s principal subsidiary in the state, obtains more than half of the parent’s total revenues.

The company’s average annual customer base growth has been ~1.0% for the last few years. The state’s relatively rapid economic growth has expanded NextEra Energy’s customer base, which could continue to improve the company’s quarterly revenues.

In 2018, NextEra Energy reported total revenues of $16.7 billion—a drop of ~3% YoY.

American Electric Power (AEP) is scheduled to report its quarterly earnings on April 25. Duke Energy (DUK) plans to report its earnings on May 9.


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