What happened
Shares of NextEra Energy (NEE 1.36%) sold off on Wednesday, falling by more than 8% by 10:30 a.m. ET. Weighing on the utility were its fourth-quarter results.
So what
NextEra Energy reported mixed fourth-quarter results. While operating revenue grew to $6.16 billion (up from $5.05 billion in the year-ago period), it missed analysts' expectations for $6.3 billion in revenue. However, adjusted earnings grew by 24.4% to $0.51 per share and were above analyst expectations of $0.49 per share.
Meanwhile, the company produced solid results for the year. Its adjusted earnings per share grew to $2.90 per share, a 13.7% increase from 2021's total. NextEra also delivered another year of market-beating returns, outperforming the S&P 500 by 10%. However, it's worth noting that its stock was still down 10% in a tough year for the broader market, which tumbled nearly 20%.
The company also reaffirmed its expectations that it will continue growing at a healthy rate for a utility, albeit at a slower pace than last year. It anticipates adjusted earnings rising to the range of $2.98 to $3.13 per share this year. That's a 5.3% increase at the midpoint, which is below the analysts' consensus that NextEra will earn $3.11 per share this year. Meanwhile, the company extended its growth outlook for another year, projecting 6% to 8% annual growth through 2026. It also expects to increase its dividend by 10% annually through at least 2024.
Now what
NextEra Energy underwhelmed investors with its fourth-quarter results and 2023 outlook. However, the company still delivered healthy growth last year and extended its long-term outlook through 2026. Because of that, today's sell-off looks like a potentially great buying opportunity for long-term investors.
