Insights into NextEra Energy's Upcoming Earnings

NextEra Energy NEE will release its quarterly earnings report on Wednesday, 2024-10-23. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate NextEra Energy to report an earnings per share (EPS) of $0.95.

NextEra Energy bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings History Snapshot

During the last quarter, the company reported an EPS missed by $0.02, leading to a 2.61% drop in the share price on the subsequent day.

Here's a look at NextEra Energy's past performance and the resulting price change:

NextEra Energy Share Price Analysis

Shares of NextEra Energy were trading at $84.03 as of October 21. Over the last 52-week period, shares are up 48.6%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on NextEra Energy

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding NextEra Energy.

Analysts have provided NextEra Energy with 11 ratings, resulting in a consensus rating of Outperform. The average one-year price target stands at $86.82, suggesting a potential 3.32% upside.

Understanding Analyst Ratings Among Peers

The below comparison of the analyst ratings and average 1-year price targets of Southern, Duke Energy and Constellation Energy, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Southern, with an average 1-year price target of $89.21, suggesting a potential 6.16% upside.
• The consensus outlook from analysts is an Outperform trajectory for Duke Energy, with an average 1-year price target of $120.0, indicating a potential 42.81% upside.
• Constellation Energy received a Outperform consensus from analysts, with an average 1-year price target of $258.83, implying a potential 208.02% upside.

Peers Comparative Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Southern, Duke Energy and Constellation Energy, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

NextEra Energy ranks at the top for Revenue Growth with a negative growth rate, indicating a decline. It is in the middle for Gross Profit, showing a moderate level. For Return on Equity, NextEra Energy is at the bottom, reflecting a lower performance compared to its peers.

Discovering NextEra Energy: A Closer Look

NextEra Energy's regulated utility, Florida Power & Light, is the largest rate-regulated utility in Florida. The utility distributes power to nearly 6 million customer accounts in Florida and owns 34 gigawatts of generation. FP&L contributes roughly 70% of NextEra's consolidated operating earnings. NextEra Energy Resources, the renewable energy segment, generates and sells power throughout the United States and Canada with more than 34 GW of generation capacity, including natural gas, nuclear, wind, and solar.

NextEra Energy's Economic Impact: An Analysis

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: NextEra Energy's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -17.42%. This indicates a decrease in the company's top-line earnings. When compared to others in the Utilities sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 26.73%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): NextEra Energy's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 3.32%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): NextEra Energy's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.89% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: NextEra Energy's debt-to-equity ratio surpasses industry norms, standing at 1.68. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

To track all earnings releases for NextEra Energy visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.