icon
icon
icon
icon
Upgrade
icon

New Era Energy (NEE.US) exceeded expectations in Q2, with its energy storage project booming, and its share price soared 5% on Wednesday!

AInvestWednesday, Jul 24, 2024 9:20 pm ET
1min read

NextEra Energy (NEE.US) released its second-quarter earnings, showing the leading renewable energy supplier's profit fell to $1.62 billion, or $0.79 per share, from $2.80 billion, or $1.38 per share, in the same period last year. While adjusted earnings per share came in at $0.96, beating analyst expectations. However, the company's revenue fell to $6.07 billion from $7.35 billion in the same period last year, missing analyst estimates of $7.27 billion.

NextEra's revenue from its main power business and renewable energy business both declined, leading to overall profit decline. Its renewable energy arm NextEra Energy Resources saw revenue fall to $1.65 billion from $2.56 billion in the same period last year. Additionally, Florida Power & Light, the company's largest subsidiary, saw revenue fall to $4.39 billion from $4.77 billion a year ago. Despite this, the company's operating expenses fell about 3% year-over-year.

Despite the challenges, NextEra successfully added 30,000 megawatts of new renewable energy and storage projects in the second quarter, which is equivalent to the power output of three nuclear reactors.

On the earnings call, Chief Financial Officer Brian Bolster announced the company had signed an 860-megawatt agreement with Google's data center, further expanding its renewable and storage generation to 22.6 gigawatts, including 1,600 megawatts added since April.

CEO John Ketchum emphasized on the call, "This is the second-best quarter in our history. These results further reinforce our belief that we can effectively meet most of the growing energy needs through the combination of new renewable and battery storage."

In the U.S., the demand for carbon-free energy is growing, and the Biden administration's Inflation Reduction Act provides tax credits to NextEra, further driving the growth of renewables. Meanwhile, the rise of artificial intelligence technology is also driving the largest increase in power demand in decades.

NextEra's total renewable portfolio for tech and data center customers is now at 70,000 megawatts. The renewable development group's head Rebecca Kujawa said about 30,000 megawatts have already been built, with the rest expected to be completed in the coming years.

NextEra's stock rose 5% in Wednesday's trading on the New York Stock Exchange, buoyed by these positive developments.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.