Juno Beach, Florida-based NextEra Energy, Inc. (NEE) generates, transmits, distributes, and sells electric power and operates multiple commercial nuclear power units. Valued at $148 billion by market cap, the company generates electricity through wind, solar, and natural gas projects. NEE owns Florida Power & Light Company, America’s largest electric utility company that provides electricity to approximately 5.9 million customer accounts or more than 12 million people across Florida. The energy giant is expected to announce its fiscal fourth-quarter earnings for 2024 on Thursday, Jan. 23.
Ahead of the event, analysts expect NEE to report a profit of $0.51 per share on a diluted basis, down 1.9% from $0.52 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect NEE to report EPS of $3.41, up 7.6% from $3.17 in fiscal 2023. Its EPS is expected to rise 7.6% year over year to $3.67 in fiscal 2025.
NEE stock has underperformed the S&P 500’s ($SPX) 26.3% gains over the past 52 weeks, with shares up 16.1% during this period. Similarly, it underperformed the Utilities Select Sector SPDR Fund’s (XLU) 19.5% gains over the same time frame.
NEE's struggles can be linked to the impact of natural disasters in Florida, which have posed challenges for the company. Additionally, the rise in interest rates has affected the profitability of their renewable energy projects. The change in administration in Washington may also have negative implications for renewable energy initiatives, such as tax credits. Furthermore, the company's significant long-term debt of $80.5 billion is at its highest level in a decade, leading to increased interest expenses that are dampening profitability.
On Oct. 23, NEE shares closed up more than 1% after reporting its Q3 results. Its adjusted EPS of $1.03 surpassed Wall Street expectations of $0.98. The company’s revenue was $7.6 billion, failing to meet Wall Street forecasts of $8.5 billion. NEE expects full-year adjusted EPS to be between $3.23 and $3.43.
Analysts’ consensus opinion on NEE stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 20 analysts covering the stock, 11 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” seven give a “Hold,” and one recommends a “Strong Sell.” NEE’s average analyst price target is $87.58, indicating a potential upside of 21.7% from the current levels.
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