NextEra Energy NEE announced fourth-quarter 2015 adjusted earnings of $1.17 per share, beating the Zacks Consensus Estimate of $1.11 by 5.41%. On a year-over-year basis, earnings climbed nearly 13.6% on the heels of higher revenues from Florida Power & Light Company.
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On a GAAP basis, NextEra Energy recorded fourth-quarter earnings of $1.10 per share compared with $2.00 per share a year ago. The variance between adjusted and GAAP earnings, during the quarter, was due to 6 cents of unrealized mark-to-market loss from non-qualifying hedges and 1 cent of merger related expenses.
Earnings for 2015 came in at $5.71 per share, higher than the Zacks Consensus Estimate of $5.66 and 7.7% ahead of 2014 earnings.
Total Revenue
In the fourth quarter, NextEra Energy’s operating revenues were $4,069 million, missing the Zacks Consensus Estimate by 2.6%. Quarterly revenues decreased nearly 12.8% from $4,664 million a year ago.
Revenues for 2015 were reported at $17.5 billion, marginally beating the Zacks Consensus Estimate of $17.4 billion. Revenues also escalated nearly 3% from last year.
Segmental Results
Florida Power & Light Company (FPL): In the fourth quarter, this segment reported revenues of $2,839 million, up nearly 5.9% year over year. Earnings from this segment were 79 cents per share compared with 65 cents per share in the prior-year quarter. The year-over-year growth in earnings came on the back of continued investment in the business.
NextEra Energy Resources (NEER): Revenues from this segment plunged nearly 40% to $1,129 million. Earnings were flat at 40 cents with the prior-year quarter.
Corporate and Other: The segment’s quarterly revenues were $102 million, down nearly 74% from $391 million a year ago.
Operational Update
In the quarter under review, NextEra Energy’s total operating expenses increased 1.9% year over year to $3,193 million. The increase in expenses was due to higher other operations and maintenance expense and depreciation and amortization expense.
Operating income plunged nearly 43% to $876 million from $1,532 million a year ago.
NextEra’s interest expenses in the reported quarter were $299 million, down from $320 million in the prior-year quarter.
Financial Update
NextEra Energy had cash and cash equivalents of $571 million as of Dec 31, 2015, compared with $577 million as of Dec 31, 2014.
Long-term debts as of Dec 31, 2015, were $26.7 billion, up from $24.4 billion as of Dec 31, 2014.
NextEra Energy’s cash flow from operating activities in 2015 was $6,116 million compared with $5,500 million in the year-ago period.
Guidance
NextEra reiterated its earnings guidance of $5.85–$6.35 for 2016 and $6.60–$7.10 for 2018. NextEra expects earnings per share to grow at a compound annual growth rate of 6% to 8% per year through 2018, off a 2014 base.
Upcoming Peer Releases
Northwestern Corp. NWE is scheduled to release fourth-quarter results before market opens on Feb 11, 2016. The Zacks Consensus Estimate stands at 98 cents.
IdaCorp, Inc. IDA is scheduled to release fourth-quarter results before market opens on Feb 18, 2016. The Zacks Consensus Estimate stands at 66 cents.
Calpine Corp. CPN is slated to release fourth-quarter results before market opens on Feb 12, 2016. The Zacks Consensus Estimate is at a loss of 1 cent.
Zacks Rank
NextEra Energy currently carries a Zacks Rank #3 (Hold).
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