NextEra Energy to Report Q4 Earnings: Buy, Sell or Hold the Stock?

Core Viewpoint - NextEra Energy is expected to report fourth-quarter 2025 earnings of 53 cents per share on revenues of $6.55 billion, with a year-over-year revenue increase of 21.72% despite a decline in earnings estimates over the past 60 days [1][5]. Earnings Performance - NextEra Energy has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 4.39% [2][3]. Earnings Estimates - The Zacks Consensus Estimate for fourth-quarter earnings has decreased by 8.62% in the last 60 days, indicating no change from the previous year's quarter [1]. Earnings ESP and Zacks Rank - NextEra Energy has an Earnings ESP of -0.47%, and its current Zacks Rank is 2 (Buy), which does not predict a conclusive earnings beat this time [4][6]. Factors Influencing Q4 Results - Florida Power & Light, a subsidiary of NextEra Energy, benefits from Florida's strong economic growth, leading to steady customer additions and competitive electricity rates approximately 40% below the national average [7][8]. - The company is experiencing rising energy demand due to data center expansions and increased power needs in the Permian Basin, supported by scalable, low-cost renewable projects [9]. - The performance of the nuclear fleet and contributions from the Energy Resources unit are expected to remain strong, bolstered by new projects [10]. Financial Metrics - NextEra Energy's trailing 12-month return on equity (ROE) is 12.42%, surpassing the industry average of 10.47%, indicating efficient use of shareholders' equity [11]. - The company's shares have increased by 18.2% over the past six months, outperforming the Zacks Utility – Electric Power industry, which rose by 7.9% [13]. Valuation - NextEra Energy is currently trading at a premium forward P/E of 21.17X compared to the industry average of 15.64X [15]. Investment Thesis - The strong economic growth in Florida is driving demand and customer growth for NextEra Energy, supported by ongoing investments in renewables and battery storage [18]. - The company maintains utility bills below the national average through disciplined expense management, enhancing service affordability and customer attraction [18]. Summary - NextEra Energy is well-positioned for growth due to rising demand for clean energy and ongoing expansion of its renewable portfolio, making it a compelling investment at current levels [21].