NextEra Energy's Shares Surge After Q3 Results Surpasses Estimates

NextEra Energy Inc NEE reported third-quarter FY23 revenue increased by 6.7% year-over-year to $7.17 billion, beating the estimate of $7.09 billion.

Adjusted EPS of $0.94 (+10.6% Y/Y), surpassed the consensus of $0.88.

Operating income declined 1.4% Y/Y to $1.84 billion, and the margin contracted by 211 bps to 25.6%.

The company's Florida Power & Light Company net income was $1.18 million, compared to $1.07 million in the third quarter of 2022, driven by continued investment in the business.

Next Energy Resources adjusted earnings grew ~21% Y/Y primarily driven by strong contributions from new renewable investments.

Cash flows from operating activities for nine months ended Sept. 30, 2023, totaled $8.42 billion, compared to $7.27 billion a year ago.

“NextEra Energy Resources had its best renewables and storage origination quarter in its history, adding approximately 3,245 megawatts to its backlog, which now totals over 21 gigawatts, net of projects placed in service,” commented John Ketchum, chairman, president and CEO.

FY23 Outlook, Unchanged: For 2023 and 2024, NextEra Energy continues to expect adjusted earnings per share to be in the ranges of $2.98 to $3.13 and $3.23 to $3.43, respectively.

For 2025 and 2026, NextEra Energy expects to grow 6% to 8%, off the 2024 adjusted earnings per share range. This translates to $3.45 to $3.70 for 2025 and $3.63 to $4 for 2026.

The company continues to expect to grow its dividends per share at a roughly 10% rate per year through at least 2024, off a 2022 base.

Price Action: NEE shares are trading higher by 6.21% at $54.72 at last check Tuesday.

Photo: Callahan Divide - Taylor County, Texas, Courtesy Next Energy Resources