NextEra Energy (NEE 1.87%), which operates Florida Power & Light (FPL) and clean-energy producer NextEra Energy Resources (NEER), released its first-quarter earnings on April 23. It exceeded analysts' earnings per share (EPS) estimates but missed revenue expectations. However, the quarter showcased strong performances, notably in renewable energy.
| Metric | Q1 2024 | Analyst Estimates | Q1 2023 | % Change (YOY) |
|---|---|---|---|---|
| EPS | $0.91 | $0.80 | $0.84 | 8.33% |
| Revenue | $5.731 | $6.276 | $6.716 | (14.64%) |
| FPL net income attributable to NEE | $1.172 | N/A | $1.070 | 9.53% |
| NEER net income attributable to NEE | $0.966 | N/A | $1.440 | (33%) |
Dollar figures in billions.
NextEra Energy at a glance
NextEra Energy provides electricity and energy infrastructure and is a leader in clean energy. Its operations include two primary segments: Florida Power & Light (FPL) and NextEra Energy Resources (NEER).
The company's recent focus is on expanding its renewable portfolio, maintaining operational excellence, and strategically capitalizing on evolving energy needs. This aligns with global sustainability trends while enhancing its competitive edge.
Quarter highlights
FPL continued to invest in its business -- capital expenditures were roughly $2.3 billion in quarter -- and saw customer rolls increase. The company noted that during the first quarter, "FPL placed into service approximately 1,640 megawatts (MW) of new, cost-effective solar, putting FPL's owned and operated solar portfolio at over 6,400 MW, which is the largest utility-owned solar portfolio in the country."
The company reported that FPL's first-quarter sales were down about 1.3% from the year-ago quarter, partly due to weather.
The company was pleased with NEER's quarter, noting during the conference call with analysts that it had its "second best origination quarter ever as well as its best solar and best storage origination quarter."
Looking forward
NextEra projects EPS growth in the range of 6% to 8% for 2025 and 2026. The company's strategic investments in the renewable sector and commitment to operational efficiency set the stage for sustained growth. It also plans to grow its dividend at a rate of roughly 10% per year through at least 2026.
Investors should watch the evolving regulatory landscape and NextEra's execution of its renewable projects. The company's ability to navigate these, alongside capitalizing on policy incentives, will be pivotal in its trajectory.
NextEra Energy's first-quarter earnings underscore its leadership in the renewable energy sphere, with strategic moves promising to fuel its ambition.
