Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
NextEra Energy's (NEE 0.02%) clean energy-focused growth plan continues to drive results. The utility's strategic success was once again evident during the second quarter as earnings surged by double digits. That strong showing kept the company on track to deliver full-year results toward the high end of its guidance range.
Metric |
Q2 2019 |
Q2 2018 |
Year-Over-Year Change |
---|---|---|---|
Adjusted earnings |
$1.13 billion |
$989 million |
14.6% |
Adjusted earnings per share |
$2.35 |
$2.08 |
13% |
Data source: NextEra Energy.
NextEra delivered solid results across the board:
Image source: Getty Images.
CEO Jim Robo commented on the company's performance by saying that: "NextEra Energy delivered strong second-quarter results and is well-positioned to meet our overall objectives for the year. We grew adjusted earnings per share by approximately 13% year-over-year, reflecting successful performance across all of the businesses."
One of the highlights of the quarter was the continued growth of its energy resources segment. Not only is that business completing projects that are boosting results but also adding new ones to the backlog. The company "continues to capitalize on one of the best environments for renewables development in our history," according to Robo, which enabled it to secure more than 1,850 MW of new projects during the quarter. That brought its total backlog up to more than 11,700 MW, which includes 4,100 MW that will drive growth after next year. One of the more noteworthy additions was a 250 MW solar project that the company is pairing with a 200-MW, four-hour battery storage system. By combining storage with renewables, NextEra can provide steady power even when the sun or wind aren't generating electricity.
NextEra Energy's excellent performance through the first half of the year has it on track to produce adjusted earnings at or near the top of its $8 to $8.50-per-share guidance range. That implies that profits will increase by around 8% from last year's level. Meanwhile, the company expects its earnings to grow at a 6% to 8% annual pace through 2022. That growth rate supports the company's view that it can increase its dividend by 12% to 14% per year through at least 2020.