NextEra (NEE) Up 7.5% Since Last Earnings Report: Can It Continue?

Core Viewpoint - NextEra Energy's recent earnings report shows mixed results, with adjusted earnings surpassing estimates while total revenues lagged significantly behind expectations, raising questions about future performance leading up to the next earnings release [2][3]. Financial Performance - Adjusted earnings for Q2 2024 were 96 cents per share, beating the Zacks Consensus Estimate of 93 cents by 3.2% and reflecting a year-over-year increase of 9.1% [2] - Total operating revenues for Q2 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 [3] Segment Results - Florida Power & Light Company reported revenues of approximately $4.38 billion, down 8.1% from $4.77 billion a year ago, with earnings of 60 cents per share compared to 57 cents previously [4] - NextEra Energy Resources generated revenues of $2.56 billion, a decrease of 27.2% from $3.5 billion in the prior year, with earnings of 42 cents per share, up from 39 cents [4] Highlights and Strategic Initiatives - Florida Power & Light has saved customers nearly $16 billion in fuel costs since 2001 through generation modernization and solar portfolio expansion [6] - NextEra Energy Resources added 3,015 MW of renewable projects to its contracted renewables backlog, which now totals nearly 22.6 gigawatts [7] Financial Update - As of June 30, 2024, cash and cash equivalents were approximately $1.55 billion, down from $2.7 billion at the end of 2023, while long-term debt increased to $68.5 billion from $61.4 billion [8] - Cash flow from operating activities in the first half of 2024 was $7 billion, compared to $4.8 billion in the same period last year [8] Guidance and Future Outlook - 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 [8] - For 2025, the company anticipates earnings per share of $3.45-$3.70 and expects 6-8% annual growth through 2026, based on 2024 adjusted earnings [9] Industry Context - NextEra Energy is part of the Zacks Utility - Electric Power industry, which has seen mixed performance among peers, such as Avangrid, which reported a year-over-year revenue increase of 21.2% [13]