NextEra Energy, Inc. (NEE), based in Juno Beach, Florida, is a leading clean energy company. Valued at $173.7 billion by market cap, it owns Florida Power & Light Company, the largest electric utility in the U.S. The company operates NextEra Energy Resources, the world's largest renewable energy generator, specializing in wind and solar power, and is a leader in battery storage. NEE is set to announce its fiscal Q3 2024 earnings on Tuesday, Oct. 22.
Ahead of the event, analysts expect NEE to report a profit of $1.01 per share on a diluted basis, up 7.5% from $0.94 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. In the most recent quarter, its EPS of $0.96 surpassed the consensus estimate by 3.2%.
For fiscal 2024, analysts expect NEE to report EPS of $3.40, up 7.3% from $3.17 in fiscal 2023.
NEE has soared 48.8% over the past year, outpacing the S&P 500’s ($SPX) 33.1% gains and the Utilities Select Sector SPDR Fund’s (XLU) 38.2% gains over the same time frame.
NextEra Energy is capitalizing on improving economic conditions in Florida and competitive residential electricity rates. Furthermore, the company’s robust price performance over the past year is driven by rising demand for data centers and the shift toward low-cost renewables and battery storage.
On Jul. 24, NEE shares jumped more than 4% after reporting its Q2 results. While it exceeded its bottom-line expectations, it failed to beat the topline projections. The company maintained its 2024 adjusted earnings forecast between $3.23 and $3.43 per share.
Analysts’ consensus opinion on NEE stock is cautiously bullish, with a “Moderate Buy” rating overall. Out of 19 analysts covering the stock, 10 advise a “Strong Buy” rating, one has a “Moderate Buy” rating, seven recommend a “Hold,” and one gives a “Strong Sell.” This configuration is slightly less bullish than a month ago, with 11 “Strong Buy” ratings.
While NEE currently trades above its mean price target of $84.33, the Street-high target of $102 represents a potential upside of 40.7% from the current price levels.
On the date of publication, Kritika Sarmah 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.
