NextEra Energy NEE reported better-than-expected third-quarter 2024 earnings per share on Oct. 23. Earnings and revenues increased 12.8% and 5.5%, respectively, year over year. The uptick was driven by the solid performance of Florida Power & Light Company (“FPL”) and NextEra Energy Resources.

Courtesy of solid financial and operational performance at both businesses, NEE has reported strong earnings results. The company surpassed expectations in the last four quarters, with an average earnings surprise of 7.05%.

Image Source: Zacks Investment Research

Highlights of NextEra Energy Stock’s Q3 Earnings

NextEra Energy reported third-quarter 2024 adjusted earnings of $1.03 per share, which beat the Zacks Consensus Estimate of 98 cents by 5.1%. The bottom line also increased nearly 12.8% year over year.
 
In the third quarter, NextEra Energy’s operating revenues were $7.56 billion, which improved 5.5% year over year due to solid financial and operational performance at both businesses.

During the quarter, NextEra’s unit NextEra Energy Resources further expanded its contracted renewables backlog by adding nearly 3 gigawatts (GW) of renewable projects in the quarter under discussion. Its backlog additions include nearly 100 megawatts (MW) of wind projects, 1,400 MW of solar projects, 1,400 MW of battery storage projects and 100 MW of wind repowering. The company’s renewables backlog is now nearly 24 GW.

NextEra Energy Resources entered into agreements with two Fortune 50 customers for the potential development of renewables and storage projects, totaling up to 10.5 GW between now and 2030. None of these projects are included in the reported backlog.

NextEra’s Shares Outperform Industry, Sector & S&P

The increase NextEra Energy’s share prices is a reflection of the strong performance of the company and customer growth, which is boosting demand for its services.

NextEra Share Price Performance  (One year)

Image Source: Zacks Investment Research

Factors  in Favor of NextEra Energy Stock

NextEra Energy is a premier U.S. utility service provider, offering efficient power and energy services across various U.S. states. FPL's focus is on clean, efficient, modernized generation and a stronger and smarter grid. The improving economic condition of Florida is also boosting the company’s prospects as the company is adding new customers each quarter.

NextEra Energy Resources continues to make long-term investments in clean energy assets. The company expects to be able to add 36.5-46.5 GW of new renewables in the 2024-2027 time frame to the generation portfolio via clean energy investments.

Nearly 89% of NEE’s customers were residential, and 11% were commercial. NextEra Energy’s unmatched scale, experience and technology lead to predictable, superior returns. Its wide operation and increasing renewables assets create unmatched competitive advantages.

Capital-intensive, domestic-focused NextEra Energy will benefit from the Fed’s decision to reduce interest rates. The U.S. Federal Reserve has lowered the benchmark rate by 50 basis points, bringing down rates to 4.75%-5% from the 5.25%-5.5% range.