NextEra Energy, Inc.
NEE
reported second-quarter 2022 adjusted earnings of 81 cents per share, which beat the Zacks Consensus Estimate of 75 cents by 8%. The bottom line was also up 14.1% from the prior-year quarter. This year-over-year improvement was due to the solid performance of Florida Power & Light Company and NextEra Energy Resources.
GAAP earnings for the second quarter were 70 cents compared with earnings of 13 cents, in the year-ago period.
Total Revenues
For the second quarter, NextEra’s operating revenues were $5,183 million, which lagged the Zacks Consensus Estimate of $5,681 million by 8.8%. The top line improved 31.9% year over year.
NextEra Energy, Inc. Price, Consensus and EPS Surprise
NextEra Energy, Inc. price-consensus-eps-surprise-chart
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NextEra Energy, Inc. Quote
Segment Results
Florida Power & Light Company (FPL)
: Revenues amounted to $4,425 million, up 23.9% from the prior-year figure of $3,569 million. Segmental earnings came in at 50 cents compared with 45 cents per share, recorded a year ago.
NextEra Energy Resources
: Revenues amounted to $778 million, up 103.9% from the prior-year figure of $380 million. Earnings came in at 35 cents compared with 29 cents per share, in the year-ago quarter.
Corporate and Other
: Operating loss for the reported quarter was 4 cents compared with loss of 3 cents per share, in the year-ago period.
Highlights of the Release
In the second quarter, FPL successfully commissioned the highly efficient, nearly 1,200 megawatt (MW), Dania Beach Clean Energy Center. The approximately $900 million project, which was completed on time and within budget, is expected to generate nearly $350 million in net cost savings for FPL customers.
During the quarter, FPL filed its updated Storm Protection Plan, which is filed every three years. The plan provides details of capital investment, anticipated over the next 10 years, to fortify the company’s energy grid for the benefit of customers.
Courtesy of Florida’s ongoing economic improvement, FPL’s average number of customers in second-quarter 2022 increased nearly 87,000 from the prior-year period.
NextEra Energy Resources expanded the contracted renewables backlog by adding 2,035 MW of renewable projects during second-quarter 2022. NextEra Energy Resources’ backlog additions include nearly 815 MW of wind projects and 1,200 MW of solar projects.
Financial Update
The company had cash and cash equivalents of $2,861 million, as of Jun 30, 2022 compared with $639 million on Dec 31, 2021.
Long-term debt as of Jun 30, 2022 was $53.38 billion, up from $50.96 billion on Dec 31, 2021.
Cash flow from operating activities for the first six months of 2022 was $4,793 million compared with $3,495 million in the comparable prior-year period.
Guidance
NextEra Energy expects its 2022 earnings expectation in the range of $2.80-$2.90 per share. The midpoint of the range is $2.85 per share, lower than the Zacks Consensus Estimate of $2.86.
For 2023, NextEra Energy expects earnings per share in the range of $2.98-$3.13. Through 2024, NextEra Energy expects earnings per share to grow 10% per year, off the 2022 adjusted earnings per share.
The company’s unit, Energy Resources currently aims to add 27,700 – 36,900 MW of renewable power projects to its portfolio within the 2022 – 2025 time frame.
Zacks Rank
Currently, NextEra carries a Zacks Rank #2 (Buy).
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Upcoming Releases
Xcel Energy
XEL
is scheduled to announce second-quarter 2022 results on Jul 28. The Zacks Consensus Estimate for earnings per share is pegged at 60 cents.
Xcel Energy’s long-term (three to five years) earnings growth is 6.4%. The Zacks Consensus Estimate for 2022 earnings per share indicates year-over-year growth of 6.7%.
Duke Energy
DUK
is set to release second-quarter 2022 results on Aug 4. The Zacks Consensus Estimate for earnings per share is pegged at $1.12.
Duke Energy’s long-term earnings growth is projected at 5.2%. The Zacks Consensus Estimate for 2022 earnings per share indicates year-over-year growth of 4.2%.
Dominion Energy
D
is scheduled to announce second-quarter 2022 results on Aug 5. The Zacks Consensus Estimate for earnings is pegged at 77 cents per share.
Dominion’s long-term earnings growth is projected at 6.3%. The Zacks Consensus Estimate for 2022 earnings per share suggests year-over-year growth of 6.5%.
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