Filed Under: ,
Tickers in this Article: NEE
NextEra Energy (NYSE:NEE) announced its results for the most recent quarter on October 24, 2012. NextEra Energy provides electricity-related services through two operating subsidiaries, FPL and FPL Energy.

Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: How To Decode A Company's Earnings Reports

The Numbers: NextEra Energy fell short of estimates with adjusted net income of $1.26 per share and revenues of $3.84 billion. Analysts were expecting adjusted net income of $1.39 per share and revenues of $3.88 billion. Revenue fell 12.3% from the same period last year. Revenue declined last quarter after shrinking 7.4% to $3.67 billion in the second quarter. NextEra Energy reported net income of $415 million during the third quarter. According to the reported number, this is up 2% from last year's figures. Last quarter marked the fourth in a row of rising net income. Profits rose 4.7% in the second quarter, 72% in the first quarter and more than twofold four quarters ago from the year earlier.

Management Quote: "NextEra Energy continued to execute well in the third quarter against our record capital investment program," said NextEra Energy President and CEO Jim Robo. "At FPL, we expect our increased investments to further enhance a customer value proposition that delivers the lowest typical residential customer bill in the state, reliability that is among the best in the country and nationally recognized customer service. At NextEra Energy Resources, we expect to add approximately 1,500 megawatts (MW) of new U.S. wind generation this year as we continue work on a record backlog of contracted renewables projects."

A Look Back: Net income has increased 37.8% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed more than twofold from the year-earlier quarter.

Looking Ahead: Analysts have a more positive outlook about the company's results for next quarter. The average estimate for fourth quarter is 91 cents per share, an increase from 90 cents 60 days ago. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has moved up from $4.52 a share to $4.54 over the last ninety days.

comments powered by Disqus

Trading Center