NextEra Energy, Inc.
) will release its second-quarter 2014 financial results before the
opening bell on Jul 29, 2014. In the prior quarter, the utility
firm reported a positive earnings surprise of 15.6%. NextEra Energy
currently has a Zacks Rank #3 (Hold). Let's see how things are
shaping up for this announcement.
Factors to Consider This Quarter
NextEra Energy continues to expand its customer base, primarily on
the back of a strengthening Florida economy. An increase in housing
permits, a decline in the unemployment rate, creation of new jobs
and business expansions all point towards an economy on the rebound
in this sunshine state.
NextEra Energy also continues with its infrastructure modernization
program besides adding new facilities to its portfolio. The
start-up of the company's two projects -- the Riviera Beach and the
Cape Canaveral facilities -- will increase its power generation
In first-quarter 2014, NextEra Energy generated around $8 million
of additional unbilled retail base revenues associated with the
hike of retail base rate related to the modernization of the
Riviera Beach power plant. The company is expected to collect the
annualized retail base rate increase of roughly $234 million from
it. Such favorable rate case decisions and the timely
recovery of capital investments encourage the utility to invest in
NextEra Energy's operations are nonetheless subject to federal,
state and local regulations associated with air, water and other
environmental issues. Weather patterns also influence utility
earnings. A mild summer in the U.S. is expected to keep energy
Our proven model does not conclusively show that NextEra Energy is
likely to beat earnings this quarter. That is because a stock needs
to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. This is not the
This is because the Most Accurate estimate and the Zacks Consensus
Estimate stand at $1.46, resulting in an ESP of 0.00%.
Zacks Rank #3 (Hold):
NextEra Energy's Zacks Rank #3 when combined with a 0.00% ESP makes
surprise prediction difficult. We caution against stocks with
a Zacks Rank #4 and #5 going into the earnings release.
Other Stocks to Consider
Here are some utility companies worth considering as our model
shows they have the right combination of elements to post an
earnings beat this quarter:
) has an earnings ESP of +14.04% and carries a Zacks Rank #2 (Buy).
Consolidated Edison, Inc.
) has an earnings ESP of +9.26% and carries a Zacks Rank #2 (Buy).
TECO Energy, Inc.
) has an earnings ESP of +3.70% and carries a Zacks Rank #2
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NEXTERA ENERGY (NEE): Free Stock Analysis
AMEREN CORP (AEE): Free Stock Analysis Report
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CONSOL EDISON (ED): Free Stock Analysis Report
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