Examining the Future: NextEra Energy's Earnings Outlook

NextEra Energy NEE is preparing to release its quarterly earnings on Wednesday, 2025-04-23. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect NextEra Energy to report an earnings per share (EPS) of $0.91.

The market awaits NextEra Energy's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings History Snapshot

In the previous earnings release, the company missed EPS by $0.00, leading to a 0.0% drop in the share price the following trading session.

Here's a look at NextEra Energy's past performance and the resulting price change:

Stock Performance

Shares of NextEra Energy were trading at $64.68 as of April 21. Over the last 52-week period, shares are down 1.22%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Analysts' Take on NextEra Energy

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on NextEra Energy.

The consensus rating for NextEra Energy is Outperform, derived from 6 analyst ratings. An average one-year price target of $90.33 implies a potential 39.66% upside.

Comparing Ratings Among Industry Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Southern, Duke Energy and Constellation Energy, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Southern, with an average 1-year price target of $91.75, suggesting a potential 41.85% upside.
• Analysts currently favor an Outperform trajectory for Duke Energy, with an average 1-year price target of $126.78, suggesting a potential 96.01% upside.
• Analysts currently favor an Buy trajectory for Constellation Energy, with an average 1-year price target of $290.0, suggesting a potential 348.36% upside.

Summary of Peers Analysis

The peer analysis summary provides a snapshot of key metrics for Southern, Duke Energy and Constellation Energy, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

NextEra Energy ranks at the top for Gross Profit and Return on Equity among its peers. However, it ranks at the bottom for Revenue Growth. Overall, NextEra Energy is positioned well compared to its peers based on these key metrics.

Delving into NextEra Energy's Background

NextEra Energy's regulated utility, Florida Power & Light, is the largest rate-regulated utility in Florida. The utility distributes power to over 6 million customer accounts in Florida and owns 36 gigawatts of generation. FP&L contributes roughly 70% of NextEra's consolidated operating earnings. NextEra Energy Resources, the renewable energy segment, generates and sells power throughout the United States and Canada with more than 37 GW of generation capacity, including natural gas, nuclear, wind, and solar.

NextEra Energy's Economic Impact: An Analysis

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Negative Revenue Trend: Examining NextEra Energy's financials over 3 months reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -21.71% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Utilities sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 22.34%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): NextEra Energy's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 2.4%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): NextEra Energy's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.64%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a below-average debt-to-equity ratio of 1.64, NextEra Energy adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for NextEra Energy visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.