NextEra Energy (NEE) posts solid Q3 results, EPS up 12%

Highlights

  • NextEra Energy, Inc’s (NYSE: NEE) adjusted EPS rose by 12% YoY to US$0.75.

  • The company holds the No. 1 rank on Fortune's list of "World's Most Admired Companies" in the electricity and gas utility sector for 2021.

  • The NextEra stock rose 9% YTD. Its dividend yield is 1.9%.

NextEra Energy, Inc. (NYSE: NEE) on Wednesday posted strong third-quarter results on Wednesday.

Its adjusted earnings per share increased to US$0.75, up 12% YoY, from EPS of US$0.67 in the comparable quarter of 2020. NextEra’s revenue was US$4.37 billion for the September quarter compared to US$4.76 billion in Q3 in 2020.

Its net income attributable to NextEra Energy on a GAAP basis was US$447 million, or US$0.23 per share, compared to US$1,229 million, or US$0.62 per share, for the third quarter of 2020.

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NEE's outlook remains unchanged. The company expects earnings per share to stay in the range of between US$2.40 and US$2.54 for the full year of 2021.

For 2022 and 2023, NextEra expects earnings per share to be between US$2.55 and US$2.75, and US$2.77 and US$2.97, respectively.

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(Third quarter results, NextEra Energy, Inc. Common Stock (NYSE: NEE)

Source - pixabay

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Segment-wise

The Florida Power & Light Company (FPL) segment revenue was US$3.69 billion, Gulf Power contributed US$440 million, NEER revenue was US$258 million, and Corporate and other segments generated negative revenue of US$22 million, bringing the total operating revenue to US$4.37 billion. NextEra's operating income was US$379 million.

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The Juno Beach, Florida-headquartered NEE is a clean energy company. It serves over 5.6 million customer accounts.

The Florida Power & Light Company is a vertically integrated and rate-regulated electric utility. It serves more than 11 million residents across Florida with clean and affordable electricity.

NextEra holds the No. 1 rank on Fortune's list of "World's Most Admired Companies" in the electricity and gas utility sector for 2021.

The company has a market cap of US$164.6 billion. Its P/E ratio is 52.62, and the forward P/E for one year is US$32.55. The annualized dividend is US$1.54, and the dividend yield is 1.9%.

The stock closed at US$82.03 on Oct 19, 2021.

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Bottomline

The NYSE Energy Index (NYE) rose 50.02% YTD and 91.80% in one year. At the same time, NEE stock grew 9% YTD and 11% in one year. However, investors should evaluate the companies carefully before investing in the stock market.

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