NextEra Energy, Inc. (NEE), headquartered in Juno Beach, Florida, is a clean energy company that owns Florida Power & Light Company, America’s largest electric utility that provides electricity to approximately 5.9 million customers, or over 12 million people across Florida. Valued at $149.78 billion by market cap, the company’s clean energy business, NextEra Energy Resources, LLC, is the world’s largest renewable energy generator, harnessing wind and solar power. It is also a world leader in battery storage. NEE also generates electricity from seven commercial nuclear power units in Florida, New Hampshire, and Wisconsin. The leading utility is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Wednesday, Jul. 24.
Ahead of the event, analysts expect NEE to report a profit of $0.92 per share on a diluted basis, up 4.6% from $0.88 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. During the previous quarter, the Florida Power & Light Company (FPL) reported that the average number of customers increased by 100,000, the best in over 15 years.
For fiscal 2024, analysts expect NEE to report EPS of $3.40, up 7.3% from $3.17 in fiscal 2023.
NEE stock has outperformed the S&P 500’s ($SPX) 18.1% gains on a YTD basis, with shares up 21.4% during this period. Similarly, it outshined the S&P 500 Utilities Sector SPDR’s (XLU) 10.5% gains over the same time frame.
NEE’s overall performance can be attributed to its robust Q1 results, promising 2024 outlook, solid demand for renewable energy, and the expected rise in U.S. power demand fueled by data centers. The company’s net income and adjusted EPS were $2.27 billion and $0.91, respectively. Revenue stood at $5.73 billion. Meanwhile, it expects full-year earnings between $3.23 and $3.43 per share. The company has guided earnings growth between 6% and 8% annually through 2026. It also expects dividends to grow by 10% per year through 2026.
NextEra Energy Resources added nearly 2,765 MW of new renewables and storage projects to its backlog, its second-best period in its history, and ended the period with over 21.5 GW of projects underway. It also signed a development deal with Entergy during the second quarter, under which the companies will jointly develop up to 4.5 GW of new solar and energy storage projects over the next five years.
Analysts’ consensus opinion on NEE stock is bullish, with a “Moderate Buy” rating overall. Out of 17 analysts covering the stock, 10 advise a “Strong Buy” rating, one has a “Moderate Buy” rating, five recommend a “Hold” rating, and one gives a “Strong Sell.” The average analyst price target for NEE is $77.59, indicating a 6.4% upside from the current levels.
On the date of publication, Dipanjan Banchur 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.
