NextEra Energy Inc.
) announced first-quarter 2013 operating earnings of $1.12 per
share, up 9.8% from the year-ago quarter. Earnings topped the
Zacks Consensus Estimate by 10.9%.
The earnings growth can be attributed to consistent customer
expansion, favorable returns from investments and timely
execution of utility scale projects.
NextEra Energy recorded GAAP earnings of 64 cents per share in
the first quarter compared with $1.11 per share in the year-ago
The difference of 48 cents between operating and GAAP
earnings, during the first quarter, was due to a 44 cent gain
from discontinued operations, a penny gain from other than
temporary impairments, an 81 cent impairment charge and valuation
allowance as well as a 12 cent loss associated with
mark-to-market non-qualifying hedges.
NextEra Energy's total operating revenue for first-quarter
2013 was $3,279.0 million, down 2.7% from $3,371.0 million
reported in the year-ago period. This was on account of a weak
merchant generation business in the Energy Service segment.
Reported quarter revenue also trailed the Zacks Consensus
Estimate by 8.6%.
Florida Power & Light (FPL)
: Revenue for first-quarter 2013 was $2,188.0 million versus
$2,224.0 million in the prior-year quarter, reflecting a marginal
decline of 1.6%. The lower revenue in the first quarter resulted
from moderate energy prices.
NextEra Energy Resources
: Revenue in the first quarter was $1,016.0 million, down by 6.8%
from $1,090.0 million in the year-ago quarter. This was due to
lower contribution from the wind generation business.
Corporate and Other
: Revenue for first-quarter 2013 was $75.0 million versus $57.0
million in the year-ago period, up 31.6%.
Total operating expenses during the quarter increased 10.8%
year over year to $2,845.0 million.
Total operating income in the first quarter declined 46% year
over year to $434.0 million. The sharper increase in costs
combined with a revenue fall led to plummeting profits.
Interest expenses in the first quarter of 2013 were $272.0
million versus $265.0 million at the end of first quarter
Cash and cash equivalents as of Mar 31, 2013 were $215.0
million, down from $329.0 million as of Dec 31, 2012.
Long-term debts as of Mar 31, 2013 were $22.9 billion versus
$23.2 billion as of Dec 31, 2012.
Cash flow from operating activities as of Mar 31, 2013 was
$1,082.0 million compared with $835.0 million as of Mar 31,
NextEra Energy retained its prior earnings expectation for
2013 in the range of $4.70 to $5.00 per share. The company
estimates compounded annual earnings growth rate of 5% to 7%
through 2016 with 2012 as the base period.
Other Utility Company Releases
Dominion Resources Inc.
) reported operating earnings of 83 cents per share in the first
quarter 2013, lower than the Zacks Consensus Estimate of 89 cents
CMS Energy Corp.
) posted adjusted earnings of 53 cents, higher than the Zacks
Consensus Estimate of 46 cents per share.
TECO Energy Inc.
) is slated to release its first quarter 2013 earnings results on
May 1. The Zacks Consensus Estimate for the quarter is pegged at
17 cents per share.
NextEra Energy reported mixed financial results in the first
quarter 2013. The company's massive modernization efforts which
are expected to boost its power service reliability will ensure a
solid customer base.
NextEra's Cape Canaveral Next Generation Clean Energy Center
came online at the end of Apr 2013 which is likely to accentuate
returns in the upcoming quarters. Its renewable business will
also gain traction driven by the company's plans to add greater
wind and solar capacity.
However, tighter pro-environment regulations might pose
challenges to the company's growth prospects. Presently, NextEra
Energy carries a Zacks Rank #3 (Hold).
Based in Juno Beach, FL, NextEra Energy Inc., through its
subsidiaries, engages in the generation, transmission,
distribution and sale of electric energy in Florida.
CMS ENERGY (CMS): Free Stock Analysis Report
DOMINION RES VA (D): Free Stock Analysis
NEXTERA ENERGY (NEE): Free Stock Analysis
TECO ENERGY (TE): Free Stock Analysis Report
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