Earnings Report: Here’s what to expect from NextEra Energy (NYSE:NEE)

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Earnings results for NextEra Energy (NYSE:NEE)

NextEra Energy, Inc. is expected* to report earnings on 10/21/2020 before market open. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 5 analysts’ forecasts, the consensus EPS forecast for the quarter is $2.75. The reported EPS for the same quarter last year was $2.39.

NextEra Energy last posted its earnings results on July 24th, 2020. The utilities provider reported $2.61 earnings per share for the quarter, topping analysts’ consensus estimates of $2.50 by $0.11. The business earned $4.20 billion during the quarter, compared to analyst estimates of $5.32 billion. Its revenue for the quarter was down 15.4% on a year-over-year basis. NextEra Energy has generated $8.37 earnings per share over the last year and currently has a price-to-earnings ratio of 41.5. NextEra Energy has confirmed that its next quarterly earnings report will be published on Wednesday, October 21st, 2020.

Analyst Opinion on NextEra Energy (NYSE:NEE)

15 Wall Street analysts have issued ratings and price targets for NextEra Energy in the last 12 months. Their average twelve-month price target is $275.60, predicting that the stock has a possible downside of 8.44%. The high price target for NEE is $340.00 and the low price target for NEE is $220.00. There are currently 5 hold ratings and 10 buy ratings for the stock, resulting in a consensus rating of “Buy.”

NextEra Energy has received a consensus rating of Buy. The company’s average rating score is 2.67, and is based on 10 buy ratings, 5 hold ratings, and no sell ratings. According to analysts’ consensus price target of $275.60, NextEra Energy has a forecasted downside of 8.4% from its current price of $300.99. NextEra Energy has been the subject of 8 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: NextEra Energy (NYSE:NEE)

NextEra Energy pays a meaningful dividend of 1.87%, higher than the bottom 25% of all stocks that pay dividends. NextEra Energy does not have a long track record of dividend growth. The dividend payout ratio of NextEra Energy is 66.91%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, NextEra Energy will have a dividend payout ratio of 55.72% next year. This indicates that NextEra Energy will be able to sustain or increase its dividend.

Insiders buying/selling: NextEra Energy (NYSE:NEE)

In the past three months, NextEra Energy insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $17,211,381.00 in company stock. Only 0.40% of the stock of NextEra Energy is held by insiders. 75.97% of the stock of NextEra Energy is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of NextEra Energy (NYSE:NEE

Earnings for NextEra Energy are expected to grow by 9.60% in the coming year, from $9.17 to $10.05 per share. The P/E ratio of NextEra Energy is 41.52, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 19.70. The P/E ratio of NextEra Energy is 41.52, which means that it is trading at a more expensive P/E ratio than the Utilities sector average P/E ratio of about 21.09. NextEra Energy has a PEG Ratio of 4.20. PEG Ratios above 1 indicate that a company could be overvalued. NextEra Energy has a P/B Ratio of 3.56. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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