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NextEra Energy (NEE) Misses Q4 Earnings, Issues Outlook

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.

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Total Revenue

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.

Segmental Results

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%.

Operational Update

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, Inc. Price, Consensus and EPS Surprise | NextEra Energy, Inc. Quote

Financial Update

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.

Guidance

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.

Zacks Rank

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


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

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