NextEra Energy (NEE) Misses Q4 Earnings, Ups 2018 Guidance

NextEra Energy, Inc. (NYSE:NEE) reported fourth-quarter 2017 adjusted earnings of $1.25 per share, lagging the Zacks Consensus Estimate of $1.31 by 4.6%. However, earnings were up 3.3% year over year.

The year-over-year growth in earnings was due to solid contribution from both Florida Power & Light Company and NextEra Energy Resources segments. The return was higher primarily due to new investments made at both segments.

On a GAAP basis, NextEra Energy recorded earnings of $4.55 per share, up from $2.06 a year ago. In addition to other one-time gain and loss, the variance between GAAP and adjusted earnings was primarily due to one-time gain of $3.95 because of the tax reforms.

Total Revenues

In the fourth quarter, NextEra Energy’s operating revenues were $4,010 million, beating the Zacks Consensus Estimate of $3,910 million by 2.6%. Reported revenues also improved 8.4% year over year.

Segmental Results

Florida Power & Light Company: Earnings came in at 84 cents per share, up 6.3% from the prior-year quarter. Revenues amounted to $2,877 million, up 12.5% from $2,558 million in the prior-year quarter.

The continued investments to strengthen its operation not only increase reliability of services but is also allow it to efficiently serve its expanding customer base.

NextEra Energy Resources: Quarterly earnings came in at 49 cents per share, up from 41 cents in the year-ago quarter. Revenues amounted to $1,134 million, up 7.8% from $1,052 million in the prior-year quarter.

Corporate and Other: Loss was 8 cents in the reported quarter compared with earnings of 1 cent in the year-ago quarter.

Highlights of the Release

In the reported quarter, NextEra Energy’s total operating expenses were down 36.1% to $3,774 million, primarily due to storm restoration costs.

Interest expenses in the reported quarter were $387 million, in line with the year-ago quarter.

In the reported quarter, Florida Power & Light Company’s total average customer count went up 55,300 year over year.

Financial Update

NextEra Energy had cash and cash equivalents of $1,714 million as of Dec 31, 2017 compared with $1,292 million as of Dec 31, 2016.

Long-term debt as of Dec 31, 2017 was $31.4 billion, up from $27.8 billion as of Dec 31, 2016.

NextEra Energy’s cash flow from operating activities in 2017 was $6,413 million compared with $6,293 million in 2016.

2018 Guidance

NextEra Energy raised its adjusted earnings guidance to the range of $7.45-$7.95 for 2018 from $6.80-$7.30 as a result of the tax reforms. The company expects earnings to witness a compound annual growth rate of 6-8% per year through 2021, off its 2018 earnings midpoint of $7.70.

Zacks Rank

NextEra Energy carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Dominion Energy (NYSE:D) is expected to report fourth-quarter 2017 results on Jan 29 and the Zacks Consensus Estimate is currently pegged at 89 cents. The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters, with a positive average surprise of 0.63%.

WEC Energy Group (NYSE:WEC) is expected to report fourth-quarter 2017 results on Jan 31 and the Zacks Consensus Estimate is currently pegged at 66 cents. The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters, with a positive average surprise of 3.08%.

Xcel Energy (NASDAQ:XEL) is expected to report fourth-quarter 2017 results on Feb 7 and the Zacks Consensus Estimate is currently pegged at 43 cents. The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters, with a positive average surprise of 1.59%.

Wall Street’s Next Amazon (NASDAQ:AMZN)

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>