NextEra Energy, Inc. NEE reported fourth-quarter 2016 adjusted earnings of $1.21 per share, missing the Zacks Consensus Estimate of $1.29 by 6.2%. Reported earnings were, however, up 3.4% year over year.
On a GAAP basis, NextEra Energy recorded fourth-quarter earnings of $2.06 per share,up from $1.10 a year ago. The variance between adjusted and GAAP earnings was primarily due to an unrealized mark-to-market gain of $1 from non-qualifying hedges, income tax-related expenses of 54 cents, and gain on sale of natural gas generation facilities of 41 cents.
NextEra Energy's adjusted earnings for 2016 came in at $6.19, missing the Zacks Consensus Estimate of $6.22.However, earnings climbed 8.4% year over year courtesy of higher contributions from its subsidiaries, Florida Power & Light Company (FPL) and NextEra Energy Resources LLC (NEER).
On a GAAP basis, earnings for the full year were $6.25, up 3.1% from $6.06 in 2015.
In the fourth quarter, NextEra Energy's operating revenues were $3,699 million, lagging the Zacks Consensus Estimate of $4,156 million by nearly 11%. Reported revenues also decreased 9.1% from $4,069 million a year ago.
Revenues for the full year came in at $16,155 million, down 7.6% from $17,486 million in the year-ago period.
Florida Power & Light Company (FPL) : Earnings came in at 79 cents per share, same as the prior-year quarter figure. Revenues amounted to $2,558 million, down 9.9% from $2,839 in the prior-year quarter.
NextEra Energy Resources (NEER) : Quarterly earnings came in at 41 cents per share, up from 40 cents in the year-ago quarter. Revenues dropped 6.8% to $1,052 million.
Corporate and Other : Quarterly earnings increased from the year-ago loss of 2 cents to earnings of a penny. Revenues in the reported quarter came in at $89 million, down 11.9%.
In the reported quarter, NextEra Energy's total operating expenses were down 13.2% to $2,773 million primarily due to lower fuel, purchased power and interchange.
Operating income rose 5.7% to $926 million from $876 million a year ago.
NextEra Energy, Inc. Price, Consensus and EPS Surprise
NextEra Energy had cash and cash equivalents of $1,292 million as of Dec 31, 2016, compared with $571 million as of Dec 31, 2015.
Long-term debt as of Dec 31, 2016 was $27.8 billion, up from $26.7 billion as of Dec 31, 2015.
NextEra Energy's cash flow from operating activities in 2016 was $6,336 million, compared with $6,116 million in the year-ago period.
NextEra Energy provided its adjusted earnings guidance in the range of $6.35-$6.85 for 2017 and $6.80-$7.30 for 2018. The company expects earnings to grow at a compound annual growth rate of 6% to 8% per year through 2020, off a 2016 base.
NextEra Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Peer Releases
DTE Energy Co. DTE is expected to report fourth-quarter 2016 results on Feb 8. The Zacks Consensus Estimate is pegged at 84 cents.
Entergy Corp. ETR is slated to report fourth-quarter 2016 results on Feb 15. The Zacks Consensus Estimate stands at 18 cents.
CMS Energy Corp. CMS is scheduled to report fourth-quarter 2016 results on Feb 2. The Zacks Consensus Estimate stands at 28 cents.
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