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NextEra (NEE) Beats Q4 Earnings Estimates, Ups 2022 EPS View

Zacks Equity Research
·4-min read

NextEra Energy, Inc. NEE reported fourth-quarter 2021 adjusted earnings of 41 cents per share, which beat the Zacks Consensus Estimate of 40 cents by 2.5%. The bottom line was also up 2.5% from the prior-year quarter. This year-over-year improvement was owing to the solid performance of all businesses and the expansion of its customer base.

NextEra Energy’s 2021 earnings per share were $2.55, up 10.4% from $2.31 in 2020. The successful execution of NextEra’s 2021 initiatives resulted in the strong performance. The 2021 earnings were better than the expected range of $2.40-$2.54 per share.

Total Revenues

For the fourth quarter, NextEra’s operating revenues were $5,046 million, which lagged the Zacks Consensus Estimate of $5,436 million by 7.2%. Nonetheless, the top line improved 14.8% year over year.

NextEra Energy, Inc. Price, Consensus and EPS Surprise

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

NextEra Energy, Inc. price-consensus-eps-surprise-chart | NextEra Energy, Inc. Quote

Segment Results

Florida Power & Light Company (FPL): Revenues amounted to $3,064 million, up 7.8% from the prior-year figure of $2,842 million. Segmental earnings came in at 28 cents per share, up 12% from 25 cents recorded a year ago.

Gulf Power Company (Gulf Power): Total revenues came in at $366 million, up 9.9% from the year-earlier figure. Earnings per share totaled 3 cents for the reported quarter, on par with the year-ago level.

NextEra Energy Resources: Revenues summed $1,833 million, up 47.5% from the prior-year quarter. Quarterly earnings came in at 21 cents per share compared with 17 cents in the year-ago quarter.

Corporate and Other: Operating loss for the reported quarter was 11 cents per share from this segment compared with a loss of 5 cents in the year-ago period.

Highlights of the Release

During the quarter, FPL commissioned the 409-MW Manatee Energy Storage Center, which will allow FPL customers to benefit from low-cost renewable energy. Construction of both the 1,200-MW Dania Beach Clean Energy Center and the North Florida Resiliency Connection remains on schedule and on budget as they continue to advance toward projected commercial operation later this year.

For fourth-quarter 2021, FPL's average number of customers increased nearly 82,000 from the prior-year period.

NextEra Energy Resources expanded the contracted renewables backlog by adding 1,500 MW of renewable projects during the December quarter. It currently has more than 16,600 MW in its backlog of signed contracts.

Financial Update

The company had cash and cash equivalents of $639 million as of Dec 31, 2021 compared with $1,105 million on Dec 31, 2020.

Long-term debt as of Dec 31, 2021 was $50.96 billion, up from $41.94 billion on Dec 31, 2020.

Cash flow from operating activities for 2021 was $7,553 million compared with $7,983 million in the comparable prior-year period.

Guidance

NextEra raised its 2022 earnings expectation to the range of $2.75-$2.85 per share from $2.55-$2.75. The midpoint of the new range is $2.80 per share, higher than the Zacks Consensus Estimate of $2.75.

For 2023, NextEra Energy expects earnings per share in the range of $2.93-$3.08, up from the prior expectation of $2.97-$2.97. For 2023 through 2025, NextEra Energy expects earnings per share to grow roughly 6-8% per year, off the expected increased 2022 adjusted earnings per share.

The company’s unit, Energy Resources currently aims to add 22,675-30,000 MW of renewable power projects to its portfolio within the 2021-2024 time frame.

Zacks Rank

Currently, NextEra carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Xcel Energy XEL is scheduled to announce fourth-quarter 2021 results on Jan 27. The Zacks Consensus Estimate for earnings per share is pegged at 58 cents.

Xcel Energy’s long-term (three to five years) earnings growth is 6.4%. The Zacks Consensus Estimate for 2022 earnings per share indicates year-over-year growth of 7.2%.

Duke Energy DUK is set to release fourth-quarter 2021 results on Feb 10. The Zacks Consensus Estimate for earnings per share is pegged at 97 cents.

Duke Energy’s long-term earnings growth is projected at 5.3%. The Zacks Consensus Estimate for 2022 earnings per share indicates year-over-year growth of 4.5%.

Dominion Energy D is scheduled to announce fourth-quarter 2021 results on Feb 11. The Zacks Consensus Estimate for earnings is pegged at 92 cents per share.

Dominion’s long-term earnings growth is projected at 6.6%. The Zacks Consensus Estimate for 2022 earnings per share suggests year-over-year growth of 7%.


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