NextEra Energy Set to Release Q4 Earnings Amid Fluctuating Stock Performance
NextEra Energy, Inc. (NEE), based in Juno Beach, Florida, is known for generating, transmitting, distributing, and selling electric power, including operating several commercial nuclear units. With a market cap of $148 billion, the company harnesses energy through wind, solar, and natural gas. NEE owns Florida Power & Light Company, the largest electric utility in the U.S., serving around 5.9 million customer accounts, which translates to more than 12 million people in Florida. Investors are looking forward to the company’s fiscal fourth-quarter earnings announcement scheduled for Thursday, January 23.
Analysts Predict Mixed Results for Upcoming Earnings
In the lead-up to this earnings report, analysts anticipate that NEE will post a profit of $0.51 per share on a diluted basis, reflecting a slight decline of 1.9% from $0.52 per share from the same quarter last year. Notably, NEE has beaten Wall Street’s expectations for earnings per share (EPS) in each of its last four quarterly reports.
Yearly Forecasts Show Positive Earnings Growth
For the full fiscal year, analysts project that NEE will achieve an EPS of $3.41, an increase of 7.6% from the $3.17 reported in fiscal 2023. Looking ahead, its EPS is forecasted to rise further to $3.67 in fiscal 2025, indicating continued growth.
Stock Performance Trails Major Indices
NEE’s stock has not performed as well as the S&P 500, which has risen by 26.3% over the past 52 weeks, while NEE shares are up only 16.1%. Additionally, it has lagged behind the Utilities Select Sector SPDR Fund (XLU), which gained 19.5% during the same period.
Challenges Impacting Overall Performance
The struggles faced by NEE can be attributed to several factors, including the recent natural disasters in Florida, which have created operational difficulties. Rising interest rates have also negatively impacted the profitability of its renewable energy projects. Further complications may arise from changes in federal administration that could affect renewable energy tax credits. The company’s long-term debt has reached $80.5 billion, the highest level in ten years, contributing to higher interest expenses that weigh on profitability.
Recent Quarterly Results and Analyst Sentiment
On October 23, NEE reported its Q3 results, with shares closing up over 1%. The adjusted EPS came in at $1.03, exceeding Wall Street’s expectations of $0.98. However, the company’s revenue of $7.6 billion fell short of forecasts, which anticipated $8.5 billion. NEE expects its full-year adjusted EPS to range between $3.23 and $3.43.
Overall, analysts have a moderately bullish outlook on NEE stock, assigning it a “Moderate Buy” rating. Among the 20 analysts covering the stock, 11 recommend a “Strong Buy,” one gives a “Moderate Buy,” seven opt for “Hold,” and one suggests a “Strong Sell.” The average analyst price target stands at $87.58, indicating a potential upside of 21.7% from current levels.
On the date of publication,
Neha Panjwani
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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