NextEra Energy, Inc. Earnings Exceed Top- and Bottom-Line Expectations

More customers and a robust renewables portfolio pushed earnings above expectations.

Justin Loiseau
Justin Loiseau
(TMFJLo)
Apr 30, 2014 at 11:03AM
Energy, Materials, and Utilities

NextEra Energy, (NYSE:NEE) reported Q1 2014 earnings today, beating on both top and bottom lines.

NextEra reported Q1 revenue of $3.67 billion, slightly better than expectations of $3.64 billion, and well above Q1 2013's $3.28 billion. On the bottom line, NextEra Energy managed to hang on to a significant portion of its sales. Adjusted earnings per share, or EPS, clocked in at $1.26, a pleasant surprise for analysts and their $1.07 EPS expectation. This quarter's earnings are also significantly stronger than Q1 2013, when shareholders took home an adjusted $1.12 per share.

In a statement today, Jim Robo, NextEra Energy, Chairman and CEO said:

NextEra Energy delivered very strong operational performance and financial results during the first quarter. FPL's [regulated utility Florida Power & Light] customer metrics reflect a strengthening of Florida's economy and business climate, and we are executing on our major capital projects that will enhance a customer value proposition that already includes excellent reliability, award-winning customer service and the lowest typical residential bill in the state. At NextEra Energy Resources, our contracted renewables portfolio continues to perform very well and drive earnings growth, and since our last earnings call we signed a power purchase agreement for a new wind project of about 250 MW.

On the regulated front, Florida Power & Light's customer base expanded by 87,000 compared to Q1 2013, the largest boost since 2007. At the same time, the number of low-usage and inactive accounts reached their lowest levels in seven and 10 years, respectively, as total retail sales grew 4.4%.

In the competitive-energy markets, NextEra Energy Resources saw earnings head higher due primarily to growth in its contracted-renewables portfolio. While its wind assets contributed favorably to this latest quarter, NextEra Energy has also decided to hang on to its 795-MW merchant fossil portfolio in Maine. The company had previously announced the sale of these assets, but "new market information" caused NextEra to reconsider.

Looking ahead, NextEra Energy expects its adjusted 2014 EPS to clock in between $5.05 and $5.45.