NextEra's performance in the third quarter beats estimates due to its renewables strength
NextEra Energy beat Wall Street's expectations for its third quarter profit on Wednesday. This was due to the strength of its renewables division.
The forecasts for this year are brighter than ever, thanks to the growing demand for electricity from homes and businesses, as well as AI-backed data centres, and increased use of electricity by homes and businesses for heating and transportation.
S&P 500 rose 5.5% in the third quarter while the index tracking utilities rose 18.4%.
Companies like NextEra, which is the largest renewable energy company in the world, benefit from a strong push towards cleaner energy.
NextEra Energy Resources' renewables division boasted a backlog of projects of 24 gigawatts in the third-quarter, up from 22.6 GW during the second quarter.
John Ketchum, CEO of Ketchum Energy Group, said: "We're also happy to announce incremental framework contracts with two Fortune-50 clients for the development of renewables projects and storage systems totaling 10.5 GW by 2030."
Florida Power & Light's regulated utility business reported a net profit of $1.29billion, compared to $1.18billion a year ago.
LSEG's estimates show that NextEra's total quarterly revenue was $7.57 billion. This is less than the $8.10 billion analysts had predicted.
The Juno Beach-based Florida company maintained its adjusted 2024 earnings-per share forecast and said that it expects 2025 EPS to range from $3.45-$3.70.
According to LSEG, NextEra's adjusted earnings per share were $1.03, compared to an estimate of 98c, for the third quarter.
NextEra Energy Partners - a division of NextEra created to manage and own energy projects - announced that it would repower 225 megawatts of wind power plants, bringing its total backlog to 1.6 GW by 2026.
The unit, however, reported a $40 million loss due to increased interest payments and losses on certain continuing operations. This is compared to a net income of 53 million dollars a year ago. In premarket trading, its shares fell 5.3%. Reporting by Seher dareen from Bengaluru, Editing by Pooja desai and Maju Sam
(source: Reuters)
