NextEra Energy Is Off to a High-Powered Start in 2019

NextEra Energy's (NYSE: NEE) efforts to build itself into one of the cleanest utilities in the world continue to pay dividends. The electric company generated double-digit percentage earnings growth in the first quarter, thanks to solid results across all its business units, and it was highly successful in securing innovative new projects

NextEra Energy Q1 results: The raw numbers

Metric Q1 2019 Q1 2018 Year-Over-Year Change
Adjusted earnings $1.06 billion $929 million 14.1%
Adjusted earnings per share $2.20 $1.96 12.2%

Data source: NextEra Energy.

What happened this quarter? 

The utility delivered excellent results across all segments:

  • NextEra Energy's Florida Power & Light (FPL) subsidiary generated $588 million, or $1.22 per share, of net income during Q1, up 21.5% year over year. Propelling that strong growth were continued investments in the business, as well as the addition of 100,000 new customers, bringing the total to more than 5 million.
  • Gulf Power Company, which NextEra acquired last year, contributed $37 million, or $0.08 per share, in net income. Integration of the business is off to a solid start as base retail operation and maintenance costs were down nearly 5% year over year. It should provide a meaningful boost to earnings in 2020 and 2021. 
  • The energy resources segment generated $448 million, or $0.93 per share, of adjusted earnings, an increase of 13.4% compared to the year-ago period. Driving that growth was a combination of new investments and strong results in the gas infrastructure and customer supply and trading segments.
Solar panels under a blue sky at sunset.

Image source: Getty Images.

What management had to say 

CEO Jim Robo was upbeat about the company's results and strategic progress:

NextEra Energy delivered strong first-quarter results and is well-positioned to meet our overall objectives for the year. We grew adjusted earnings per share by approximately 12% year-over-year, reflecting excellent performance across our businesses. During the quarter, FPL successfully brought online the Okeechobee Clean Energy Center, which is among the cleanest, most fuel-efficient power plants of its kind in the world, on budget and ahead of schedule, and continued to execute one of the largest-ever solar expansions. The Gulf Power integration continues to advance well, and I am confident in our ability to execute our plan for the benefit of customers and shareholders. NextEra Energy Resources continues to capitalize on the best two renewables development periods in our history with the addition of nearly 1,000 megawatts to its contracted renewables backlog.

Looking forward 

Robo also commented about what lies ahead:

Combined with the strength of our balance sheet and credit ratings, we continue to believe NextEra Energy is uniquely positioned to drive long-term shareholder value and remain as enthusiastic as ever about our future prospects. I will be disappointed if we are not able to deliver financial results at or near the top end of our 6% to 8% adjusted earnings per share compound annual growth rate range through 2021, off the 2018 base of $7.70 per share, plus the expected deal accretion from the Florida transactions.

Based on that, NextEra Energy is on track to deliver adjusted earnings on the higher end of its 2019 guidance range of $8.00 to $8.50 per share.

10 stocks we like better than NextEra Energy
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and NextEra Energy wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of March 1, 2019

Matthew DiLallo owns shares of NextEra Energy. The Motley Fool recommends NextEra Energy. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More