NextEra Energy Inc
) announced second-quarter 2012 operating earnings of $1.26 per
share, 8 cents higher than the year-ago quarter. Earnings results
beat the Zacks Consensus Estimate of $1.16 per share.
The earnings outperformed on the back of marked investments in the
company's Florida Power and Lightning business and continued
NextEra Energy reported GAAP earnings of $1.45 per share for the
second quarter of 2012 compared with $1.38 per share in the
The difference of 19 cents between operating and GAAP earnings,
during the second quarter, was due to mark-to-market gains from
non-qualifying hedges and other than temporary impairments.
NextEra Energy's total operating revenue for second-quarter 2012
was $3,667 million, down 7.4% from $3,961 million reported in the
year-ago period. This is on account of lower contribution from wind
assets and uncertainty regarding rate cases filed by Florida Power.
Reported quarter revenue fell short of the Zacks Consensus Estimate
of $3,904 million.
Florida Power & Light
(FPL): Revenue recorded an 8% decline to $2,580 million from $2,801
million in second-quarter 2011.The lower revenue in the second
quarter was the result of weak energy prices and rate case risk.
NextEra Energy Resources
: Total revenue for second-quarter was $1,030 million versus $
1,105 million in second-quarter 2011, reflecting a drop of 6.7%.The
revenue downturn was caused by unfavorable performance by the
NextEra's wind resources.
Corporate and Other
: Total revenue for second-quarter was $57 million, up 3.6% year
Total operating expenses during the quarter decreased by 13.3% to
$2,645 million from $3,054 million in the year-ago quarter.
Operating expenses declined as cost of fuel and power purchase
shrank by 20.6% to $1,236 million from $1,557 million in the
prior-year quarter. This was partially offset by a 3.1% rise in
operations and maintenance expenses.
Total operating income in the second quarter of 2012 was $1,022
million in contrast to $907 million in the year-ago quarter,
reflecting a 12.6% increase.
Interest expenses in the second quarter swelled by 5.4% to $270
million from $256 million at the end of the second quarter 2011.
Cash and cash equivalents as of June 30, 2012 were $295 million,
down from $377 million as of December 31, 2011.
Long-term debts of the company as of June 30, 2012, were $21,580
million versus $20,810 million as of December 31, 2011.
NextEra Energy reaffirmed its earnings expectation for 2012 in the
range of $4.35 to $4.65 per share. Similarly, the company
maintained its adjusted earnings estimates for 2014 in the range of
$5.05 to $5.65 per share.
Teco Energy Inc
), which competes with NextEra Energy Inc., is expected to webcast
its second quarter earnings before the market opens on August 2,
2012. The Zacks Consensus Estimates for its second quarter and 2012
earnings are currently pegged at 37 cents and $1.33 per share,
NextEra Energy Inc. continued to ride high on its earnings outcome
in the second quarter of 2012 and is expected to retain this
impressive performance due to its persistent capital investment
efforts to provide zero-emission services and enhance customer
We believe that the company is in a strong position in relation to
green energy. A NextEra business wing for green energy is
anticipated. It will provide stimulus for growth through its
involvement in various wind generation programs.
NextEra has held on to its original strength in wind capacity
generation at 1,900 megawatts in US and Canada during both quarters
of 2012. This will certainly attract investor confidence in the
company's stock in the long run and further add to company's
NEXTERA ENERGY (NEE): Free Stock Analysis
TECO ENERGY (TE): Free Stock Analysis Report
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Fluctuating power prices and possibility of negative rate case
outcome for FPl could hurt NextEra's growth opportunities.
Based in Juno Beach, Florida, NextEra Energy Inc. through its
subsidiaries engages in the generation, transmission, distribution
and sale of electric energy in Florida.
NextEra Energy currently retains a Zacks #3 Rank, which translates
into a short-term Hold rating. We have a Neutral recommendation
over the long term.