NextEra Energy Reports a 27% Decrease in Q3 Earnings

NextEra Energy, the renowned Florida utility and renewable-energy powerhouse, has announced a 27% decline in its third-quarter earnings. Despite an increase in revenue, higher operating expenses have impacted the company's financial performance.

Earnings and Revenue Figures

The Juno Beach-based power producer revealed that its net income for the quarter ended Sept. 30 decreased to $1.22 billion, or 60 cents a share, compared to $1.68 billion, or 86 cents a share, during the same period last year. However, it's worth noting that when excluding certain items like nonqualified hedges and changes in the value of investments held in a nuclear decommissioning fund, NextEra achieved adjusted earnings of 94 cents a share. This figure surpasses the average Wall Street target of 89 cents a share, according to FactSet.

In terms of revenue, NextEra Energy experienced growth, with third-quarter revenues increasing by 6.7% to $7.17 billion. This surpassed the average analyst estimate of $7.07 billion as reported in a FactSet survey.

Operating Expenses and Capital Expenditure

While revenue showed improvement, operating expenses also saw a 6% rise, totaling $5.34 billion.

Florida Power & Light, NextEra's largest unit and the country's leading electric utility in terms of customers, invested $2.6 billion in capital expenditures for the quarter. Looking ahead, Florida Power & Light forecasts capital expenditures between $9 billion and $9.5 billion for the year.

Renewable-Energy Portfolio Expansion

NextEra Energy Resources, the company's renewable-energy arm, experienced an expansion in its portfolio. They added approximately 3,245 megawatts of new wind, solar, and storage capacity to their backlog, further solidifying their commitment to sustainable energy solutions.

Future Financial Projections

NextEra Energy reasserted its financial expectations for 2023 and 2024. For 2023, the company forecasts adjusted earnings per share to fall within the range of $2.98 to $3.13. In 2024, NextEra aims to achieve earnings ranging from $3.23 to $3.43 per share.