What's In Store For NextEra Energy (NEE) In Q1 Earnings?
Zacks Investment Research | Apr 19, 2017 05:04AM ET
NextEra Energy, Inc. (NYSE:NEE) will release first-quarter 2017 financial results before the market opens on Apr 21. Last quarter, this utility company reported a negative earnings surprise of 6.20%. Let’s see how things are shaping up prior to this announcement.
Factors to Consider
During Dec 2016, the company received final approval from Florida Public Service Commission (FPSC) to increase electric rate effective Jan 1, 2017. The annualized increase in revenue will be $400 million, which will definitely have a positive impact on first-quarter earnings.
In the first quarter, the company completed the sale of its fiber-optic telecommunications business, FPL FiberNet. A part of the sale proceeds were utilized to repay a portion of its long-term debt. Sale proceeds of nearly $700 million (after tax adjustment) will be added to NextEra Energy’s first-quarter results.
We believe the warmer winter weather in Florida is likely to have an adverse impact on demand for the utility services in first-quarter 2017.
Earnings Whispers
Our proven model does not conclusively show that NextEra Energy is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.
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