Why Is NextEra (NEE) Up 5.7% Since Last Earnings Report?

Core Viewpoint - NextEra Energy's recent earnings report shows a mixed performance, with adjusted earnings surpassing estimates while total revenues fell short, leading to questions about the sustainability of its positive stock trend [2][3][4]. Financial Performance - NextEra Energy reported Q2 2025 adjusted earnings of $1.05 per share, exceeding the Zacks Consensus Estimate of $1.02 by 2.9%, and reflecting a year-over-year increase of 9.4% [3]. - Total operating revenues for Q2 were $6.7 billion, missing the Zacks Consensus Estimate of $7.22 billion by 7.28%, but showing a year-over-year improvement of 10.4% [4]. - Florida Power & Light Company generated revenues of approximately $4.71 billion, up 7.1% from the previous year, with earnings of 62 cents per share compared to 60 cents [5]. - NextEra Energy Resources reported revenues of $1.91 billion, a 16.4% increase from the prior year, with earnings of 53 cents per share compared to 42 cents [5]. - Operating revenues from Corporate and Other were $78 million, up from $35 million in the previous year, but the operating loss widened to 10 cents per share from 6 cents [6]. Growth Drivers - Florida Power & Light's growth was driven by ongoing business investments, with capital expenditures around $2 billion for the quarter and projected full-year investments between $8 billion and $8.8 billion [7]. - NextEra Energy Resources added 3.2 gigawatts to its backlog, totaling nearly 30 gigawatts, indicating strong performance in new renewables and storage origination [9]. Financial Position - As of June 30, 2025, NextEra Energy had cash and cash equivalents of nearly $1.72 billion, an increase from $1.49 billion at the end of 2024 [10]. - Long-term debt rose to $82.7 billion from $72.4 billion during the same period [10]. - Cash flow from operating activities in the first half of 2025 was $5.95 billion, down from $7.10 billion in the first half of 2024 [11]. Guidance and Future Outlook - NextEra Energy reaffirmed its 2025 earnings guidance, expecting earnings per share in the range of $3.45-$3.70, with a midpoint of $3.575, slightly below the Zacks Consensus Estimate of $3.68 [12]. - For 2026 and 2027, adjusted earnings per share are expected to be in the range of $3.63 to $4.00 and $3.85 to $4.32, respectively, with a projected earnings growth rate of 6-8% through at least 2027 [13]. Market Sentiment - Since the earnings release, there has been a downward trend in estimates revision, indicating a cautious market sentiment [14]. - NextEra Energy currently holds a subpar Growth Score of D and a Momentum Score of C, with an overall VGM Score of F, placing it in the bottom 40% for value investors [15]. - The stock has a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [16].