NextEra Energy’s Stock To Likely Rebound After Falling 11% Over Ten Days

NextEra Energy Inc. stock (NYSE: NEE), a provider of electricity-related energy services, has declined by 11% over the last ten trading days (two weeks) and currently stands at around $74. Its principal subsidiary, FPL, is a rate-regulated utility engaged primarily in the generation, distribution, transmission, and sale of electric energy. Investors were underwhelmed by NextEra’s results and outlook for 2023. While Q4 operating revenue grew to $6.16 billion (up from $5.05 billion in the year-ago period), it missed analysts’ expectations for $6.3 billion in revenue. However, adjusted earnings grew by 24% year-over-year (y-o-y) to $0.51 per share and were above analyst expectations of $0.49 per share. Looking ahead, the company mentioned that it will continue growing at a healthy rate for a utility, albeit at a slower pace than last year. It anticipates adjusted earnings to rise in the range of $2.98 to $3.13 per share this year, which is below the analysts’ consensus of $3.11 per share. Meanwhile, the company extended its growth outlook for another year, projecting 6% to 8% annual growth through 2026.

NextEra Energy
NEE
believes it can complete 32.7 to 41.8 gigawatts of new renewable energy and storage capacity through 2026. Consequently, it is extending its current growth forecast for another year, stretching it into 2026. It should be noted that the company continued to secure new investments as it added 8 GW of renewable energy and storage projects to its backlog in 2022, including 1.7 GW since its last quarterly call. That was its best-ever year for securing new projects. Considering its current backlog of 19 GW, it has a clearer picture of its growth prospects in the future.