NextEra (NEE) Q4 Earnings Beat, Revenues Miss Estimates
NextEra Energy, Inc. NEE reported fourth-quarter 2020 adjusted earnings of 40 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 2.6%. The bottom line was also up 11.1% from 36 cents per share in the prior-year quarter.
This year-over-year improvement was owing to the company’s proper execution of its growth plans as well as the expansion of its customer base.
On a GAAP basis, the company recorded net losses of $5 million against a net income of $975 million in the year-ago quarter.
NextEra Energy, Inc. Price, Consensus and EPS Surprise
NextEra Energy, Inc. price-consensus-eps-surprise-chart | NextEra Energy, Inc. Quote
Total Revenues
For the fourth quarter, NextEra Energy’s operating revenues were $4,395 million, which lagged the Zacks Consensus Estimate of $4,940 million by 11%. The top line also dipped 4.2% year over year.
Segment Results
Florida Power & Light Company (FPL): Revenues amounted to $2,842 million, down 2.8% from the prior-year figure of $2,925 million. Segmental earnings came in at 25 cents per share, up 25% from 20 cents recorded a year ago.
Gulf Power Company (Gulf Power): Total revenues came in at $333 million, down 5.7% from the year-earlier figure. Earnings per share totaled 3 cents for the reported quarter, up 200% from the year-ago level.
NextEra Energy Resources: Revenues summed $1,243 million, down 7.1% from the prior-year quarter. Quarterly earnings came in at 17 cents per share, in line with the year-ago quarter.
Corporate and Other: Operating loss for the reported quarter was 5 cents per share from this segment, wider than a loss of 2 cents in the year-ago period.
Highlights of the Release
During the quarter, NextEra Energy’s arm Gulf Power completed its Plant Crist’s coal-to-natural gas conversion and associated natural gas lateral, thereby supporting the accelerated shut down of the plant's coal units. Per prior plans, Gulf Power legally merged with FPL on Jan 1, 2021. It will continue as a separate operating division in 2021, thus serving its existing customers under separate retail rates.
During fourth-quarter 2020, FPL's average number of customers increased nearly 76,000 from the prior-year period.
Last year, the company invested more than $14 billion in strengthening its infrastructure and clean energy generation, which also increased resilience of its operation.
Interest expenses in the quarter were $111 million, down 40.9% from the year-ago period.
NextEra Energy Resources expanded the contracted renewables backlog by adding 2,000 megawatts of renewable projects during the December quarter.
Financial Update
The company had cash and cash equivalents of $1,105 million as of Dec 31, 2020 compared with $600 million on Dec 31, 2019.
Long-term debt as of Dec 31, 2020 was $41.94 billion, up from $37.54 billion on Dec 31, 2019.
Cash flow from operating activities for 2020 was $7.98 billion compared with $8.15 billion in the prior year.
Guidance
NextEra Energy expects 2021 earnings in the range of $2.40-$2.54. The metric is projected to see a CAGR of 6-8% per year through 2023, off a 2021 base. As a result, its earnings per share guidance for 2022 and 2023 is estimated in the bands of $2.55-$2.75 and $2.77-$2.97, respectively.
The company’s unit Energy Resources currently aims to add 22,675-30,000 MW of renewable power projects to its portfolio within the 2021-2024 time frame.
Zacks Rank
Currently, 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
Xcel Energy XEL is scheduled to announce fourth-quarter 2020 results on Jan 28. The Zacks Consensus Estimate for earnings per share is pegged at 55 cents.
CMS Energy Corporation CMS is scheduled to report fourth-quarter 2020 results on Feb 4. The Zacks Consensus Estimate for the quarterly bottom line is pegged at 55 cents per share.
Duke Energy DUK is scheduled to report fourth-quarter 2020 results on Feb 11. The Zacks Consensus Estimate for the metric is pegged at $1.02 per share.
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