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NextEra Energy (NEE) Q4 Earnings & Revenues Beat Estimates

NextEra Energy, Inc. NEE reported fourth-quarter 2022 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 50 cents by 2%. The bottom line was also up 24.4% from the prior-year quarter. This year-over-year improvement was due to the solid performance of Florida Power & Light Company.

GAAP earnings for the fourth quarter were 76 cents compared with earnings of 61 cents in the year-ago period.

2022 adjusted earnings per share were $2.90, up 13.7% from $2.55 per share in the year-ago period. Earnings were near the upper end of the guidance range of 2.80-$2.90 per share.

Total Revenues

For the fourth quarter, NextEra’s operating revenues were $6,164 million, which surpassed the Zacks Consensus Estimate of $5,743 million by 7.3%. The top line improved 22.2% year over year.

2022 total revenues were $20,956 million, up 22.8% year over year. The year-over-year improvement was due to strong performances from Florida Power & Light Company and NextEra Energy Resources.

NextEra Energy, Inc. Price, Consensus and EPS Surprise

NextEra Energy, Inc. Price, Consensus and EPS Surprise
NextEra Energy, Inc. Price, Consensus and EPS Surprise

NextEra Energy, Inc. price-consensus-eps-surprise-chart | NextEra Energy, Inc. Quote

Segment Results

Florida Power & Light Company (FPL): Fourth-quarter revenues amounted to $4,071 million, up 18.7% from the prior-year figure of $3,430 million. Segmental earnings came in at 38 cents per share compared with 31 cents recorded a year ago.

NextEra Energy Resources: Revenues amounted to $2,093 million, up 28.2% from the prior-year figure of $1,633 million. Fourth-quarter earnings came in at 20 cents per share compared with 21 cents in the year-ago quarter.

Corporate and Other: The operating loss for the reported quarter was 7 cents per share compared with a loss of 11 cents in the year-ago period.

Highlights of the Release

NextEra Energy’s operating income in the fourth quarter was $2,045 million, up 50.9% from $1,355 million in the year-ago period.

Interest expenses in the fourth quarter were $685 million, up 14.4% from the year-ago period.

Courtesy of Florida’s ongoing economic improvement, FPL's average number of customers in fourth-quarter 2022 increased nearly 74,000 from the prior-year period.

NextEra Energy Resources expanded the contracted renewables backlog by adding 1,700 megawatts (MW) of renewable projects during fourth-quarter 2022. NextEra Energy Resources' backlog additions include nearly 300 MW of wind projects, 730 MW of solar projects and 670 MW of battery storage projects. NextEra Energy Resources' renewables backlog now stands at approximately 19 gigawatts after placing nearly 4,600 MW into service in 2022.

Financial Update

The company had cash and cash equivalents of $1,601 million as of Dec 31, 2022 compared with $639 million on Dec 31, 2021.

Long-term debt as of Dec 31, 2022 was $55.25 billion, up from $50.96 billion on Dec 31, 2021.

Cash flow from operating activities for 2022 was $8,262 million compared with $7,553 million in the comparable prior-year period.

Guidance

NextEra Energy expects 2023 earnings in the range of $2.98-$3.13 per share. The midpoint of the range is $3.05 per share, lower than the Zacks Consensus Estimate of $3.11.

For 2024, NextEra Energy expects earnings per share in the range of $3.23-$3.43. Through 2026, NextEra Energy expects earnings per share to grow in the range of 6 to 8% per year, offsetting the 2024 adjusted earnings per share. This translates to earnings per share in the range of $3.45 to $3.70 for 2025 and $3.63 to $4.00 for 2026.

The company’s unit, Energy Resources, currently aims to add 32,700-41,800 MW of renewable power projects to its portfolio within the 2023-2026 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

WEC Energy Group WEC is set to release fourth-quarter 2022 results on Feb 2. The Zacks Consensus Estimate for earnings per share is pegged at 75 cents.

WEC Energy’s long-term (three- to five-year) earnings growth is projected at 6.2%. The Zacks Consensus Estimate for 2023 earnings per share indicates year-over-year growth of 4.4%.

Dominion Energy D is scheduled to announce fourth-quarter 2022 results on Feb 8. The Zacks Consensus Estimate for earnings is pegged at $1.05 per share.

Dominion’s long-term earnings growth is projected at 5.8%. The Zacks Consensus Estimate for 2022 earnings per share suggests year-over-year growth of 6.2%.

Edison International EIX is scheduled to announce fourth-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for earnings per share is pegged at $1.08.

Edison International’s long-term earnings growth is 2.6%. The Zacks Consensus Estimate for 2023 earnings per share indicates a year-over-year decline of 4.4%.

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