NextEra Energy, Inc. Earnings Cheat Sheet: Margins Expand with Strong Revenues, Profit Increases

S&P 500 (NYSE:SPY) component NextEra Energy, Inc. (NYSE:NEE) reported net income above Wall Street’s expectations for the second quarter. NextEra Energy, Inc. provides electricity-related services through two operating subsidiaries, FPL and FPL Energy.

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NextEra Energy Earnings Cheat Sheet for the Second Quarter

Results: Net income for the electric utilities company rose to $580 million ($1.18 per share) vs. $417 million ($1.01 per share) in the same quarter a year earlier. This marks a rise of 39.1% from the year earlier quarter.

Revenue: Rose 10.3% to $3.96 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: NEE beat the mean analyst estimate of $1.09 per share. It beat the average revenue estimate of $3.72 billion.

Quoting Management: “NextEra Energy continued to deliver solid results in the second quarter of 2011, increasing adjusted earnings per share by more than six percent over the prior-year comparable quarter. At Florida Power & Light Company, the key earnings drivers were the investments we made to increase the efficiency and reliability of our electric system, which directly benefit our residential and business customers through reduced fuel costs and lower bills. At NextEra Energy Resources, we continue to actively sign power purchase agreements for new wind projects as well as for our existing assets, which should add increased visibility to future earnings and cash flow. We believe our two primary operating companies continue to provide us with a strong pipeline of investment opportunities,” said NextEra Energy Chairman and CEO Lew Hay.

Key Stats:

The company beat estimates last quarter after falling short in the previous two quarters. In the first quarter, it missed the mark by 2 cents, and in the fourth quarter of the last fiscal year, it fell short by 7 cents.

A year-over-year revenue increase last quarter snaps a streak of two consecutive quarters of revenue declines. Revenue fell 13.5% in the first quarter and fell 6.6% in the fourth quarter of the last fiscal year.

Last quarter’s profit increase breaks a streak of two consecutive quarters of year-over-year profit decreases. In the first quarter, net income fell 51.8% while the figure dropped in the fourth quarter of the last fiscal year.

Gross margins expanded last quarter, rising 2.7 percentage points to 41.2% from the year earlier quarter. This snaps a streak of two consecutive quarters of shrinking margins.

Competitors to Watch: Exelon Corporation (NYSE:EXC), El Paso Electric Company (NYSE:EE), Entergy Corporation (NYSE:ETR), The Southern Company (NYSE:SO), FirstEnergy Corp. (NYSE:FE), PPL Corporation (NYSE:PPL), Pepco Holdings, Inc. (NYSE:POM), American Electric Power Co., Inc. (NYSE:AEP), Northeast Utilities System (NYSE:NU), and Constellation Energy Group, Inc. (NYSE:CEG).

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(Source: Xignite Financials)