NextEra Energy Inc.
) announced third-quarter 2013 operating earnings of $1.43 per
share, up 13.5% from the year-ago quarter. Reported earnings also
breezed past the Zacks Consensus Estimate by 3 cents.
The encouraging results were due to the company's effective
execution of development projects, continual customer additions
and service start-up of renewable contracted projects.
NextEra Energy recorded GAAP earnings of $1.64 per share in
the third quarter compared with 98 cents per share in the
The difference between operating and GAAP earnings, during the
quarter, was due to an 18 cent impact from unrealized
mark-to-market loss from non-qualifying hedges and 3 cents gain
from operating results of the Spain solar project.
NextEra Energy's total operating revenue for third-quarter
2013 was $4,394.0 million, up 14.3% from $3,843.0 million
reported in the year-ago period. This was driven by a rise in
total energy sales volume and increased production from its
natural gas infrastructure.
Reported quarter revenue however lagged the Zacks Consensus
Estimate by $17.0 million.
Florida Power & Light (FPL)
: Revenue for third-quarter 2013 was $3,020.0 million versus
$2,975.0 million in the prior-year quarter, reflecting an
increase of 1.5%. Continued growth-centric investments and steady
economic backdrop in Florida were the key factors driving FPL's
However, decline in retail sales owing to mild weather and low
power prices partially offset the above positives.
NextEra Energy Resources:
Revenue in the third quarter was $1,281.0 million, up 58.5% from
$808.0 million in the year-ago quarter. The substantial upswing
stemmed from a 125 MW Canadian wind project which came online
during the quarter.
Corporate and Other:
Revenue for third-quarter 2013 was $93.0 million, up 55% from
$60.0 million in the year-ago period.
Total operating expenses during the quarter increased 3.5%
year over year to $3,209.0 million. This was mainly due to 5.4%
and 29.6% jump in operations and maintenance expenses as well as
depreciation and amortization charges, respectively.
Total operating income in the third quarter climbed 59.7% year
over year to $1,185.0 million. The sharper rise in revenue more
than offset the cost increase leading NextEra Energy to book
Interest expenses in the third quarter of 2013 were $288.0
million versus $259.0 million at the end of third quarter
Cash and cash equivalents as of Sep 30, 2013 were $558.0
million, increasing from $329.0 million as of Dec 31, 2012.
Long-term debts as of Sep 30, 2013 were $23,862.0 million
versus $23,177.0 million as of Dec 31, 2012.
Cash flow from operating activities in the nine months ending
Sep 30, 2013 was $3,390.0 million compared with $3,157.0 million
in the nine months ending Sep 30, 2012.
NextEra Energy anticipates 2013 earnings to be in the upper
half of its guidance range of $4.70 to $5.00 per share. For 2014,
the company expects earnings to be in the range of $5.05-$5.45
per share. NextEra Energy continues to project compounded annual
earnings growth rate of 5% to 7% through 2016 with 2012 as the
Other Utility Company Releases
Xcel Energy Inc.
) posted earnings per share of 77 cents, exceeding the Zacks
Consensus Estimate by a penny.
Wisconsin Energy Corp.
) reported third quarter 2013 earnings of 60 cents per share,
beating the Zacks Consensus Estimate by 4 cents.
NextEra Energy posted favorable earnings result in the third
quarter of 2013, outpacing our expectation while revenue was a
drag. The visible recovery of the Florida economy will continue
to offer potential sales growth.
The recent agreement to purchase the 250 megawatt Silver State
South Project from
First Solar Inc.
) will further expand the company's already premier renewable
asset base. In addition, NextEra Energy's lofty investments in
developing its natural gas infrastructure will draw lucrative
returns for the company.
However, commodity price sensitivities might act as a
deterrent to the company's growth. Currently, NextEra Energy
carries a Zacks Rank #3 (Hold).
FIRST SOLAR INC (FSLR): Free Stock Analysis
NEXTERA ENERGY (NEE): Free Stock Analysis
WISC ENERGY CP (WEC): Free Stock Analysis
XCEL ENERGY INC (XEL): Free Stock Analysis
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