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NextEra Energy Third Quarter Earnings Preview
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NEE
NextEra Energy (NYSE:NEE) will release its third quarter earnings on Wednesday, October 24, 2012. The company's stock price is approaching its 52-week high of $72.22.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: Surprising Earnings Results
What to Expect: The consensus estimate for NextEra Energy's earnings is $1.38 per share, up 5.3% from a year ago when the company reported earnings of $1.31 per share.
The consensus estimate, while unchanged in the past month, is down from $1.46 three months ago. For the fiscal year, analysts are expecting earnings of $4.53 per share.
NextEra Energy is expected to beat last year's reported revenue of $4.38 billion and come in at $4.43 billion for the quarter. The anticipated revenue for the fiscal year is $15.44 billion.
Company Performance: After two quarters of growth, revenue fell year-over-year in the second quarter. It dropped 7.4% in the second quarter. Before that, revenue has risen 7.6% in the first quarter and 13.2% in the fourth quarter of the last fiscal year.
NEE's P/E ratio of 14.1 is above the industry average of 12.26. A company with a high P/E ratio will eventually have to live up to the high rating by substantially increasing its earnings, or the price will need to drop. A simple P/E ratio can reveal the stock's real market value and show how the valuation compares to its industry group or a benchmark like the S&P 500 Index. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Understanding The P/E Ratio
Over the past quarter, the stock price has increased from $69.95 on July 23, 2012 to $72.05. NextEra Energy's stock price is currently in the middle of a rising streak. The stock has risen $2.68 per share since October 12, 2012.
The Competition: NextEra Energy provides electricity-related services through two operating subsidiaries, FPL and FPL Energy. The majority of analysts (14 of 19) rate NextEra Energy a buy. This rating has been unchanged for the past three months.
The company's closest competitor in the electric utilities industry is Southern (SO). Analysts are more optimistic about NextEra Energy than about Southern. Only one out of 16 analysts rate the latter a buy.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: Surprising Earnings Results
What to Expect: The consensus estimate for NextEra Energy's earnings is $1.38 per share, up 5.3% from a year ago when the company reported earnings of $1.31 per share.
The consensus estimate, while unchanged in the past month, is down from $1.46 three months ago. For the fiscal year, analysts are expecting earnings of $4.53 per share.
NextEra Energy is expected to beat last year's reported revenue of $4.38 billion and come in at $4.43 billion for the quarter. The anticipated revenue for the fiscal year is $15.44 billion.
Company Performance: After two quarters of growth, revenue fell year-over-year in the second quarter. It dropped 7.4% in the second quarter. Before that, revenue has risen 7.6% in the first quarter and 13.2% in the fourth quarter of the last fiscal year.
Over the past quarter, the stock price has increased from $69.95 on July 23, 2012 to $72.05. NextEra Energy's stock price is currently in the middle of a rising streak. The stock has risen $2.68 per share since October 12, 2012.
The Competition: NextEra Energy provides electricity-related services through two operating subsidiaries, FPL and FPL Energy. The majority of analysts (14 of 19) rate NextEra Energy a buy. This rating has been unchanged for the past three months.
The company's closest competitor in the electric utilities industry is Southern (SO). Analysts are more optimistic about NextEra Energy than about Southern. Only one out of 16 analysts rate the latter a buy.
by
Investopedia Staff
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