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NextEra Energy Whiffs on Revenues

By Seth Jayson - Updated Apr 7, 2017 at 12:05PM

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Just the facts, Fool.

NextEra Energy (NYSE: NEE) reported earnings on Oct. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), NextEra Energy whiffed on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share grew.

Gross margins expanded, operating margins shrank, net margins expanded.

Revenue details
NextEra Energy tallied revenue of $3.84 billion. The four analysts polled by S&P Capital IQ predicted revenue of $4.47 billion on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $4.38 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.26. The 15 earnings estimates compiled by S&P Capital IQ forecast $1.39 per share. GAAP EPS of $0.98 for Q3 were 1.0% higher than the prior-year quarter's $0.97 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 40.1%, 80 basis points better than the prior-year quarter. Operating margin was 19.5%, 130 basis points worse than the prior-year quarter. Net margin was 10.8%, 150 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $4.66 billion. On the bottom line, the average EPS estimate is $0.96.

Next year's average estimate for revenue is $15.36 billion. The average EPS estimate is $4.51.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,074 members out of 1,104 rating the stock outperform, and 30 members rating it underperform. Among 260 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 255 give NextEra Energy a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NextEra Energy is outperform, with an average price target of $71.32.

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