NextEra Energy Inc. Earnings Cheat Sheet: Yet Another Quarter of Profitability

S&P 500 (NYSE:SPY) component NextEra Energy Inc. (NYSE:NEE) reported its results for the third quarter. NextEra Energy provides electricity-related services through two operating subsidiaries, FPL and FPL Energy.

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NextEra Energy Earnings Cheat Sheet for the Third Quarter

Results: Net income for NextEra Energy Inc. fell to $407 million (97 cents per share) vs. $720 million ($1.74 per share) a year earlier. This is a decline of 43.5% from the year earlier quarter.

Revenue: Fell 6.6% to $4.38 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: NEE reported adjusted net income of $1.31 per share. By that measure, the company fell short of mean estimate of $1.42 per share. Analysts were expecting revenue of $4.44 billion.

Quoting Management: “While our earnings this quarter were below the results in last year’s third quarter, they are consistent with our most recent earnings guidance. At Florida Power & Light Company, earnings per share were up approximately 12 percent over the prior-year comparable quarter, due to increased investment in the business. These investments are providing FPL customers with superior reliability and a typical bill that is the lowest in the state and more than 20 percent below the national average. At NextEra Energy Resources, we are very pleased to move forward with our two newest solar projects, Desert Sunlight and McCoy, which will add 525 megawatts to our solar project backlog. We now have 1,310 megawatts of new wind projects for which we already have long-term contracts that are scheduled to be placed into service in 2011 or 2012. As we continue to make considerable investments across the company, we are confident that NextEra Energy’s development pipeline provides tangible earnings growth prospects through 2014 and will enhance shareholder value.This backlog supports our belief that we can deliver average adjusted earnings per share growth of five percent to seven percent per year through 2014 from a 2011 range of $4.35 to $4.65,” said NextEra Energy Chairman and CEO Lew Hay.

Key Stats:

The company fell short of estimates last quarter after beating the mark the quarter before with net income of $1.18 versus a mean estimate of net income of $1.09 per share.

Net income has dropped 9.1% year over year on average across the last five quarters. Performance was hurt by a 51.8% decline in the first quarter from the year earlier quarter.

Revenue fell last quarter after seeing a rise the quarter before. Revenue rose 10.3% to $3.96 billion in the second quarter from the year earlier.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to 90 cents per share from 86 cents. For the fiscal year, the average estimate has moved down from $4.50 a share to $4.45 over the last sixty days.

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)