NextEra Energy (NEE) Q2 Earnings Surpass Estimates, Sales Lag

Core Insights - NextEra Energy, Inc. (NEE) reported second-quarter 2024 adjusted earnings of 96 cents per share, exceeding the Zacks Consensus Estimate of 93 cents by 3.2% and reflecting a year-over-year increase of nearly 9.1% [1] - The company's operating revenues for the second quarter were $6.06 billion, falling short of the Zacks Consensus Estimate of $7.26 billion by 16.8% and down 17.4% year over year [6] - Florida Power & Light Company (FPL) and NextEra Energy Resources were key contributors to the earnings performance, with FPL's revenues at approximately $4.38 billion, down 8.1% from the previous year, and NextEra Energy Resources' revenues at $2.56 billion, down 27.2% [7] Financial Performance - GAAP earnings per share for the second quarter were 79 cents, compared to $1.38 in the same period last year [5] - Cash and cash equivalents as of June 30, 2024, were nearly $1.55 billion, a decrease from $2.7 billion on December 31, 2023 [11] - Long-term debt increased to $68.5 billion as of June 30, 2024, up from $61.4 billion at the end of 2023 [12] Segment Results - FPL's earnings per share were 60 cents, up from 57 cents a year ago, despite a revenue decline [7] - NextEra Energy Resources reported earnings of 42 cents per share, compared to 39 cents in the prior-year quarter [7] - The corporate segment had operating revenues of $35 million, with an operating loss of 6 cents per share, an improvement from a loss of 8 cents in the previous year [8] Growth and Guidance - NextEra Energy reaffirmed its 2024 earnings guidance in the range of $3.23-$3.43 per share, with a midpoint of $3.33, which is lower than the Zacks Consensus Estimate of $3.40 [13] - For 2025, the company expects earnings per share of $3.45-$3.70, and anticipates a growth rate of 6-8% per year through 2026, based on 2024 adjusted earnings [13] - The Energy Resources unit aims to add 36,500-45,500 MW of renewable power projects to its portfolio from 2024 to 2027 [14] Operational Highlights - FPL has saved customers nearly $16 billion in fuel costs since 2001 through its generation modernization efforts and solar portfolio expansion [9] - NextEra Energy Resources expanded its contracted renewables backlog by adding 3,015 MW of renewable projects in the quarter, bringing the total backlog to nearly 22.6 gigawatts [10]