NextEra Energy Earnings on Deck

S&P 500 (NYSE:SPY) component NextEra Energy (NYSE:NEE) will unveil its latest earnings on Wednesday, October 24, 2012. 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 $1.38 per share, a rise of 5.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.46. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.38 during the last month. For the year, analysts are projecting profit of $4.53 per share, a rise of 3.2% from last year.

Past Earnings Performance: Last quarter, the company reported net income of $1.26 per share versus a mean estimate of profit of. The company has beaten estimates for the past three quarters.

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Stock Price Performance: From September 20, 2012 to October 18, 2012, the stock price rose $4 (5.9%), from $68.05 to $72.05. The stock price saw one of its best stretches over the last year between November 23, 2011 and December 7, 2011, when shares rose for 10 straight days, increasing 9% (+$4.70) over that span. It saw one of its worst periods between October 4, 2012 and October 12, 2012 when shares fell for seven straight days, dropping 2.4% (-$1.71) over that span.

A Look Back: In the second quarter, profit rose 4.7% to $607 million ($1.45 a share) from $580 million ($1.38 a share) the year earlier, exceeding analyst expectations. Revenue fell 7.4% to $3.67 billion from $3.96 billion.

Analyst Ratings: With 14 analysts rating the stock a buy, none rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose more than twofold in the fourth quarter of the last fiscal year and 72% in the first quarter before increasing again in the second quarter.

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 7.6% in the first quarter and 13.2% in the fourth quarter of the last fiscal year before falling in the second quarter.

Wall St. Revenue Expectations: Analysts are projecting a rise of 1.1% in revenue from the year-earlier quarter to $4.43 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.64 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.

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

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