What to Watch When NextEra Energy Reports Its Q2 Results
Renewable Energy

What to Watch When NextEra Energy Reports Its Q2 Results

The leading renewable energy generator has been growing earnings and capacity, but weather may hit it with a headwind.

Matthew DiLallo

Energy, Materials, and Utilities

NextEra Energy (NYSE:NEE) has had the wind at its back over the past several quarters. The clean-energy-focused utility’s earnings grew 15% in 2018, and it continued its strong momentum during 2019’s first quarter, when earnings rose another 12% year over year. The company is benefiting from its investments in building out more wind and solar power generating capacity, as well as its needle-moving acquisitions.

Those dual fuels should have kept the utility’s growth engine humming along during the second quarter, but investors will want to keep an eye on the details when it reports on the period’s results later this week.

Stacks of coins with wind turbines and solar panels in the background.

Image source: Getty Images.

Keep an eye on its guidance

NextEra Energy’s management has forecast another good year. The utility is currently expected to produce between $8 and $8.50 per share of adjusted earnings in 2019, which at the midpoint would be about 7% higher than last year’s total. Achieving that outlook would keep the company on track to hit its three-year forecast to grow its adjusted earnings at a 6% to 8% compound annual rate.

A solid start during the first quarter put NextEra Energy on course to hit its full-year earnings target. However, there are a few areas that warrant a bit of extra scrutiny from investors.

First, look at its progress on integrating Gulf Power, which it acquired last year. The company noted in its Q1 report that integration

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