On a GAAP basis, NextEra Energy recorded first-quarter earnings of $1.45 per share compared with 98 cents per share a year ago. The variance between adjusted and GAAP earnings, during the quarter, was due to a 6 cent impact of unrealized mark-to-market gain from non-qualifying hedges, a 1 cent loss associated with Spain Solar projects and a merger-related expense of 1 cent. Nextera Energy Inc. - Earnings Surprise | FindTheCompany Total Revenue In the first quarter, NextEra Energy’s operating revenues were $4,104 million, surpassing the Zacks Consensus Estimate by 7.3%. Quarterly revenues increased 11.7% from $3,674 million a year ago. Segmental Results Florida Power & Light Company (FPL): In the first quarter, the segment reported revenues of $2,541 million, increasing a marginal 0.2% over the year-ago figure. This was primarily driven by an improving Florida economy in Florida which led to customer additions. FPL catered to 66,000 new customer accounts in the first quarter of 2015 in comparison to last year. NextEra Energy Resources (NEER): Revenues from this segment shot up nearly 41.2% to $1,460 million from the prior-year quarter. The upside was attributable to higher revenues from the contracted renewable business and improvements in the customer supply and trading business. Corporate and Other: The segment’s quarterly revenues were $103 million, down 1.9% from $105 million a year ago. Operational Update In the quarter under review, NextEra Energy’s total operating expenses increased 1.3% year over year to $2,975 million. The minor increase was due to higher depreciation and amortization expenses and impairment charges in addition to a merger-related expense of $4 million. Total operating income escalated nearly 53% to $1,129 million from $738 million a year ago. The company’s interest expenses in the reported quarter were $321 million compared with $319 million in the prior-year quarter. Financial Update NextEra Energy had cash and cash equivalents of $469 million as of Mar 31, 2015, down from $577 million as of Dec 31, 2014. Long-term debts as of Mar 31, 2015, were $24.3 billion, slightly down from $24.4 billion as of Dec 31, 2014. NextEra Energy’s cash flow from operating activities in the first quarter was $1.2 billion compared with $1 billion a year ago. Business Update FPL continues to make progress on the Port Everglades Clean Energy Center. It is expected to be operational in mid-2016. The third next-generation combined-cycle natural gas generation modernization project is expected to bring about energy efficiency. FPL also won the approval of the Florida Public Service Commission (PSC) for further reducing the electric rates for its customers. This was made possible by lower fuel costs. Starting May 1, the electric bill for FPL’s residential customer will be reduced by approximately $3 per month. This is the second rate reduction this year. In March, FPL filed a petition with the Florida PSC seeking approval for acquiring a 250-megawatt (“MW”) coal-fired facility, the Cedar Bay Generating Plant in Jacksonville, only to phase the plant out of service. The decision was taken based on the fact that this facility emits a high amount of harmful carbon gases and generates electricity at a much steeper cost than its other facilities. During the quarter, FPL shut down its Woodford Shale natural gas production project in southeastern Oklahoma. In 2014, NEER expanded its renewable backlog comprising 200 MW of new wind energy and 300 MW of solar energy. The joint venture with EQT Corp. EQT, which is called Mountain Valley Pipeline joint venture (“JV”), is in its permitting process. The JV added two additional partners during the first quarter, WGL Midstream and Vega Midstream MVP LLC. The project is expected to go online by the end of 2018. Guidance NextEra reaffirmed its earnings guidance in the range of $5.40–$5.70 per share for 2015 and 5.75–$6.25 per share for 2016. Other Utility Releases American Electric Power Company Inc. AEP reported first-quarter 2015 operating earnings of $1.28 per share, beating the Zacks Consensus Estimate of $1.11 by 15.3%. DTE Energy Co. DTE reported first-quarter 2015 operating earnings per share of $1.65, beating the Zacks Consensus Estimate of $1.49 by 10.7%. Our Take NextEra Energy’s relentless efforts to invest in energy efficient and clean energy projects were reflected in its financial results. The company delivered impressive top- and bottom-line figures beating the Street estimates. The company has quite a few projects under construction waiting to come online in the near term. NextEra Energy is expanding its fleet of natural gas fired operations which is helping it to cut electric rates for its customers. NextEra’s renewable expansion initiative has also been impressive, which will help the company meet regulatory mandates on carbon emission. NextEra Energy currently has a Zacks Rank #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NEXTERA ENERGY (NEE): Free Stock Analysis Report AMER ELEC PWR (AEP): Free Stock Analysis Report EQT CORP (EQT): Free Stock Analysis Report DTE ENERGY CO (DTE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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