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NextEra Energy (NYSE:NEE) is scheduled to announce Q2 earnings on Friday, Jul. 22, before market open.
Consensus EPS estimate is $0.75 (+5.6% Y/Y) and consensus revenue estimate is $5.26B (+33.8% Y/Y).
Over the last 2 years, NEE has beaten EPS estimates 100% of the time and revenue estimates 13% of the time.
Over the last 3 months, EPS estimates have seen 3 upward revisions and 6 downward. Revenue estimates have seen 2 upward revisions and 4 downward.
The Biden administration declared a 2-year exemption from solar panel tariffs. The move pushed solar stocks higher at a time when the sector is facing supply chain woes as well as surging costs for parts, labor and freight.
A week after the decision, NEE raised its adj. EPS guidance for 2022, 2023, 2024 and 2025 to $2.80-$2.90, $2.98-$3.13, $3.23-$3.43 and $3.45-$3.70, respectively.
NEE said 2022 and 2023 solar and storage projects have been delayed by ~6 months on average. ~2 GW of contracts in backlog are at risk of cancellation out of ~18 GW total backlog.
SA contributor JR Research in an analysis said NEE seems to have lost its medium-term bullish bias, and it continues to trade at a significant premium against 5-year and 10-year averages.
Q1 recap:
- NEE swung to a Q1 GAAP loss of $451M, or $0.23/share, reflecting losses on some of its hedges as natural gas prices surged during the period.
- The firm estimated ~2.8 GW solar and storage projects will be delayed by at least a year due to a federal probe into solar panel imports. This update dragged solar stocks lower.
Shares of NEE – which fell 14.3% YTD – outperformed the S&P 500 index in the last 1 year, but underperformed the S&P 500 Utilities index.
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