NextEra Energy Q3 EPS Tops by $0.09 While Revenue Falls $160M Short

NEENEE

NextEra Energy received a consensus “Moderate Buy” rating from 20 analysts with an average 12-month price target of $91.50, including JPMorgan boosting its target to $97 and Barclays to $85. The utility reported Q3 EPS of $1.13 versus $1.04 expected while revenue of $7.97 billion missed estimates by $0.16 billion.

1. Consensus Rating and Broker Targets

NextEra Energy has earned a consensus recommendation of Moderate Buy from twenty research firms, with thirteen issuing Buy ratings, three issuing Strong Buy ratings and four issuing Hold ratings. Analysts covering the company have set an average 12-month price target of $91.50, reflecting expectations for continued earnings growth driven by both its regulated utility business and expanding renewable generation portfolio.

2. Recent Analyst Revisions

Several major brokerages have adjusted their outlooks in recent months. JPMorgan Chase & Co. raised its target from $94.00 to $97.00 and reaffirmed an Overweight rating on December 11th. Barclays increased its objective from $84.00 to $85.00 while maintaining an Equal Weight view. HSBC lifted its projection from $94.00 to $95.00 on November 10th. New Street Research and Cowen both initiated or reset coverage during the quarter, with Cowen assigning a Buy rating upon launch of its report on October 15th.

3. Latest Quarterly Results and Forecasts

In its most recent quarter, NextEra Energy reported adjusted earnings per share of $1.13, outpacing the consensus estimate by nine cents. Revenue for the period totaled $7.97 billion, a 5.3 percent increase year-over-year, while net margin reached 24.7 percent and return on equity measured 12.4 percent. Analysts now forecast full-year earnings of $3.68 per share, reflecting contributions from both Florida Power & Light’s regulated operations and continued growth in utility-scale solar and wind projects.

4. Dividend Policy and Insider Activity

The company declared a quarterly dividend of $0.5665 per share, representing a $2.27 annualized payout and a yield of approximately 2.7 percent, with a payout ratio of 72.3 percent. On November 17th, CEO Armando Pimentel Jr. sold 145,140 shares, reducing his position by nearly half, in a transaction disclosed via an SEC filing. Insider ownership remains modest at 0.2 percent of total shares, underscoring the company’s broad institutional investor base.

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