NextEra Energy Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component NextEra Energy (NYSE:NEE) will unveil its latest earnings tomorrow, Tuesday, January 29, 2013. NextEra Energy provides electricity-related services through two operating subsidiaries, FPL and FPL Energy.

NextEra Energy Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 96 cents per share, a rise of 3.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 93 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 96 cents during the last month. Analysts are projecting profit to rise by 2.7% compared to last year’s $4.51.

Past Earnings Performance: Last quarter, the company missed estimates by 13 cents, coming in at profit of $1.26 per share versus a mean estimate of net income of $1.39 per share. In the second quarter, the company beat estimates by 10 cents.

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Wall St. Revenue Expectations: On average, analysts predict $4.66 billion in revenue this quarter, a rise of 20.7% from the year-ago quarter. Analysts are forecasting total revenue of $15.2 billion for the year, a decline of 0.9% from last year’s revenue of $15.34 billion.

Analyst Ratings: With 10 analysts rating the stock a buy, none rating it a sell and seven rating the stock a hold, there are indications of a bullish stance by analysts.

A Look Back: In the third quarter, profit rose 2% to $415 million (98 cents a share) from $407 million (97 cents a share) the year earlier, but fell short analyst expectations. Revenue fell 12.3% to $3.84 billion from $4.38 billion.

Here’s how NextEra Energy traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

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Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 72% in the first quarter and 4.7% in the second quarter before increasing again in the third quarter.

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 7.4% in the second quarter and dropped again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.56 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 0.64 in the second quarter to the last quarter driven in part by a decrease in current assets. Current assets decreased 8.6% to $4.44 billion while liabilities rose by 3% to $7.88 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)