Latest news with #FloridaPowerLight
Globe and Mail
2 days ago
- Business
- Globe and Mail
NEE Stock Trades at a Premium Valuation to Its Industry: How to Play?
NextEra Energy 's NEE shares are trading at a premium compared to the Zacks Utility - Electric Power industry. Its price-to-earnings F12M 18.86X is higher than the industry average of 15.27X and the broader Zacks Utilities sector's average of 16.15X. The company benefits from its well-chalked-out investment plan to strengthen its operations, strategic acquisitions, rising customer base and improvement in the economic condition in its service regions. NEE's Price Performance The increase in NextEra Energy's share prices is a reflection of the strong performance of the company, its focus on emission reduction and customer growth. Price Performance (Two Months) Should you consider adding NEE to your portfolio only based on positive price movements? Let's delve deeper and find out the factors that can help investors decide whether it is a good entry point to add NEE stock to their portfolio. Factors Contributing Toward Strong Performance Florida's improving economic conditions are driving population growth and energy demand, allowing NEE to expand its customer base. Its subsidiary, Florida Power & Light Company (FPL), offers residential electricity rates well below the national average, enhancing customer appeal and market positioning. Nearly 89% of NextEra Energy's customer base consists of residential users, with the remaining 11% being commercial. The company's unmatched scale, technological edge and operational expertise enable it to deliver consistent, superior returns. Its extensive operations and expanding renewable energy portfolio provide strong competitive advantages. NextEra Energy Resources continues to make significant long-term investments in clean energy. Between 2024 and 2027, the company plans to add 36.5-46.5 GW of new renewable capacity. In Q1 2025 alone, it added 3.2 GW of renewable projects, growing its contracted renewables backlog to nearly 28 GW. Over the past decade, technological advances have driven down the cost of renewable energy, allowing NEE to sidestep fossil fuel market volatility and secure long-term power purchase agreements. These agreements provide stable and predictable cash flows. Additionally, investments in advanced battery storage systems enhance grid reliability and open new revenue streams. NextEra Energy also benefits from one of the lowest cost structures in the utility sector, supported by operational efficiencies, economies of scale in renewables, and strategically located assets. These factors underpin strong profit margins and reinforce the company's competitive edge. NEE's capital investment strategy is focused on long-term, consistent revenues and superior returns. The company intends to invest more than $72.6 billion through 2029 to strengthen its operations further. NEE's Earnings Surprise Thanks to efficient plan execution and strategic capital investments, NextEra Energy exceeded earnings per share expectations in the first quarter of 2025. Impressively, the company has outperformed earnings estimates for four consecutive quarters, delivering an average earnings surprise of 3.58%. Another operator in the utility space, Duke Energy Corporation DUK, reported earnings surprise in three out of the past four reported quarters and lagged once, resulting in an average earnings surprise of 6.07%. NextEra Energy's Earnings Estimates Moving Up The company expects its 2025 earnings per share in the range of $3.45-$3.70 compared with $3.43 a year ago. The Zacks Consensus Estimate for NEE's 2025 and 2026 earnings per share indicates year-over-year growth of 7.29% and 7.95%, respectively. It expects to increase its earnings per share in the range of 6-8% annually through 2027 from the 2024 level. The Zacks Consensus Estimate for Duke Energy's 2025 and 2026 earnings per share reflects a year-over-year growth of 7.12% and 6.10%, respectively. NEE Stock Returns Better Than Its Industry NextEra Energy's trailing 12-month return on equity (ROE) is 12.06%, ahead of the industry average of 10.13%. ROE is a financial ratio that measures how well a company uses its shareholders' equity to generate profits. The current ROE of the company indicates that it is using shareholders' funds more efficiently than its peers. Another prominent utility, The Southern Company SO, produces a large volume of clean electricity, like NextEra Energy. The Southern Company's ROE is better than its industry at 12.7%. NextEra Energy Raises Value of Shareholders NEE plans to increase the dividend rate annually by 10%, at least through 2026, from the 2024 base, subject to its board's approval. The current annual dividend of the company is $2.27 per share, and the dividend yield of 3.03% is better than the Zacks S&P 500 Composite's yield of 1.58%. Check NEE's dividend history here. The Southern Company's current annual dividend is $2.96 per share, reflecting a dividend yield of 3.28%. Southern Company's management raised its dividend five times in the past five years. Rounding Up NextEra Energy maintains steady performance, supported by growing demand for clean energy across its service areas. The company's broad U.S. presence, operational efficiency, economies of scale in renewables, and strategically positioned projects continue to drive and enhance its overall results. Despite its premium valuation, investors can retain this Zacks Rank #3 (Hold) utility in their portfolio, given its stable ROE, rising earnings estimates and regular dividend payment capabilities. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE): Free Stock Analysis Report Southern Company (The) (SO): Free Stock Analysis Report Duke Energy Corporation (DUK): Free Stock Analysis Report
Forbes
5 days ago
- Business
- Forbes
Power Struggle: FP&L's Proposed Rate Hike Tests Regulators, Households
TOPSHOT - First responders in the water outside an apartment complex that was flooded from and ... More overflowing creek due to Hurricane Milton on October 10, 2024 in Clearwater, Florida. At least four people were confirmed killed as a result of two tornadoes triggered by Hurricane Milton on the east coast of the US state of Florida, local authorities said Thursday. (Photo by Bryan R. SMITH / AFP) (Photo by BRYAN R. SMITH/AFP via Getty Images) When Florida Power & Light requested a nearly $9 billion rate increase over four years, it landed with a thud—threatening to add even more financial strain to already burdened Florida households, many of whom have seen bills rise by 20% in the last five years. However, the utility's PR machine has kicked into high gear to explain its position: it must fund grid modernization, clean energy expansion, and infrastructure upgrades. There's no question FP&L must modernize its grid and expand its clean energy portfolio. But affordability matters. Regulators must find a middle ground—approving some rate increases while capping excessive profits, mandating transparency, and requiring support for vulnerable customers. 'There's no reason we should have the highest return on equity in the nation. It's a tax increase on Floridians because you don't have a choice but to pay your electric bill. We should not have some of the highest electricity bills in the nation,' because consumers run their air conditioners much of the year, says Bradley Marshall, senior attorney with Earthjustice, in a virtual conversation. In February, FP&L—the wholly owned subsidiary of NextEra Energy—asked the Florida Public Service Commission to grant it a $8.961 billion rate hike from January 1, 2026, to December 31, 2029. A household using the average 1,200 kilowatt-hours per month would see its monthly bill rise, initially, by $10 in 2026—a number that would continue growing through 2029. Zane Smith, senior director for the AARP in Florida, told me that escalating energy bills force seniors into a cruel dilemma: choosing between running their air conditioners and filling prescriptions or buying groceries. Many are on a fixed income, unable to pay higher energy bills—something that could lead to heat-related illnesses or even death. Part of the problem is that the utility seeks an 11.9% return on equity, notably higher than the national industry average of 9.6%. The company argues that this ensures financial stability and attracts investors. However, Florida residents have already seen their electric bills rise by 20% over the last five years. Indeed, some analysts argue that FP&L's rate request is more about improving shareholder value than servicing the state's electricity customers. 'This massive rate increase is not because of investments in renewable energy, but because of FP&L's continued need to increase the return on equity for their shareholders,' says Brooke Ward, senior Florida organizer for Food and Water Watch, in a chat. 'It's also because hundreds of millions of dollars are invested in fossil fuels. When we look at our moderate-income families in urban areas, a quarter of those currently have an energy burden of 12% or more, which means they are in energy poverty.' Emergency response workers await deployment orders after Hurricane Milton in St. Petersburg, ... More Florida, US, on Friday, Oct. 11, 2024. Hurricane Milton's devastating path across Florida has left at least 10 dead, millions without power, and destroyed homes and crops, as authorities warn it could take days to assess the full extent of the damages. Photographer: Tristan Wheelock/Bloomberg That's why the Florida Public Service Commission is in the eye of the storm. The commission, though, has a track record of greenlighting steep rate hikes, raising concerns about the public's interest. Consider: the Florida Supreme Court previously questioned the commission's approval of a $4.8 billion rate increase in 2021, suggesting that regulatory oversight might be lacking. Specifically, Florida Supreme Court Justice Carlos Muñiz lambasted the public service commission, saying it lacked transparency and didn't adequately justify why it granted the last hike—after the commission's staff advised against it. 'The PSC is a black box,' he told the Florida press. 'It's supposed to be the opposite of a black box.' 'The Florida Public Service Commission is really captive to the utilities,' which are significant participants in the state's political arena, making huge donations to elected officials and sponsoring charitable events, adds Susan Glickman, vice president of policy with the Clio Institute, in a talk with me. Utilities must prioritize investing in critical projects that benefit the public. FP&L must deliver reliable, affordable electricity—even as it faces mounting challenges from climate extremes and population growth. That's where grid modernization comes in: a smart grid can reroute power during congestion and prevent outages before they happen. To that end, the utility claims its distribution reliability is 59% better than the national average. It also stated that its investments in technology enabled it to prevent 2.7 million customer outages in 2024, when Hurricanes Debby, Helene, and Milton struck. This track record has been achieved as it has added 275,000 customers since 2021 and is set to add 335,000 more through 2029. According to the U.S. Energy Information Administration, natural gas accounts for 73% of the utility generation mix, nuclear for 11%, and solar for 14%. 'First, customers don't open up an ROE; they open up an electricity bill, which is expected to remain well below the national average even with the proposed increase. Ultimately, ROE is about our ability to obtain capital to continue making smart investments on behalf of customers,'Andrew Sutton, spokesperson for FP&L, told me. 'Planning for the future and investing in the grid now actually reduces cost over time for everyone,' FP&L's CEO Armando Pimentel, added, on FP&Ls site. FP&L's rate request is a tricky balancing act—at the intersection of grid modernization, shareholder returns, and customers' bills. It is known for being reliable, but it still heavily depends on fossil fuels. The utility's nearly $9 billion rate hike request is, therefore, a tough sell—especially with such a high return on equity. While investment and upgrades are necessary, the company shoots for the moon. Regulators should pare back the return, require cost transparency, and ensure low-income protection. The overarching goal is to support a resilient grid without overburdening Floridians.
Yahoo
10-06-2025
- Business
- Yahoo
NextEra Energy (NEE) Outperforms Broader Market: What You Need to Know
The most recent trading session ended with NextEra Energy (NEE) standing at $72.81, reflecting a +1.27% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.55% gain on the day. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 0.63%. The parent company of Florida Power & Light Co.'s shares have seen an increase of 3.17% over the last month, surpassing the Utilities sector's loss of 0.28% and falling behind the S&P 500's gain of 6.29%. The investment community will be paying close attention to the earnings performance of NextEra Energy in its upcoming release. In that report, analysts expect NextEra Energy to post earnings of $0.99 per share. This would mark year-over-year growth of 3.13%. In the meantime, our current consensus estimate forecasts the revenue to be $7.25 billion, indicating a 19.44% growth compared to the corresponding quarter of the prior year. NEE's full-year Zacks Consensus Estimates are calling for earnings of $3.68 per share and revenue of $29.12 billion. These results would represent year-over-year changes of +7.29% and +17.64%, respectively. It's also important for investors to be aware of any recent modifications to analyst estimates for NextEra Energy. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, NextEra Energy boasts a Zacks Rank of #3 (Hold). In terms of valuation, NextEra Energy is currently trading at a Forward P/E ratio of 19.57. This represents a premium compared to its industry's average Forward P/E of 17.98. We can additionally observe that NEE currently boasts a PEG ratio of 2.53. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Utility - Electric Power stocks are, on average, holding a PEG ratio of 2.66 based on yesterday's closing prices. The Utility - Electric Power industry is part of the Utilities sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 28% of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
E&E News
10-06-2025
- Business
- E&E News
Florida's public counsel challenges FPL's $2.6B rate hike request
TALLAHASSEE, Florida — The state Office of Public Counsel told state regulators Monday that Florida Power & Light Co. should only receive about $105 million of the $9.8 billion it stands to collect if a rate hike request is approved. Public Counsel Walt Trierweiler filed expert witness testimony Monday in response to FPL's rate hike petition filed in February with the Public Service Commission. Trierweiler said his witnesses identified only $105.6 million in rate increases that should be allowed. Details were not provided because the summary testimony of accountant Helmuth W. Schultz III was classified as confidential until it is reviewed by FPL. Advertisement But in other OPC testimony filed Monday, witness Timothy J. Devlin said FPL customers stand to lose $3 billion under an accounting mechanism that would be extended until 2030 under the rate hike request.
CBS News
02-06-2025
- Climate
- CBS News
As South Florida enters 2025 hurricane season, Fort Lauderdale residents prepare for all kinds of severe weather
South Florida is officially in hurricane season and people are already preparing for severe weather of all kinds. CBS News Miami went to Fort Lauderdale to see how residents are hunkering down in vulnerable areas. Jesus Sanchez said after sitting through enough storms, he has hurricane prep down to a routine. "You can see over the years that I have to get it replaced, but it's very sturdy," Sanchez said. He has to fit his stuff in this little shed that doubles as a laundry room. "It's gotta be like Tetris: You gotta know how to fit things," Sanchez said. He screws it shut so it won't fly open. "Zip and zip," Sanchez said. And Sanchez also has to ensure his rental units have nothing that could fly off and hit something or someone. "These are a foot on the ground," Sanchez said. He said his property is ready for hurricane season, and Florida Power & Light has put out its recommendations for what supplies you'll need. Some of those include: Radios Flashlights Batteries and a Phone charger Non-perishable food Disposable dinnerware and utensils Supplies of Prescriptions and toiletries Houses aren't the only buildings that have to be ready. The commander at the American Legion Post 36 said the building is higher and less vulnerable to flooding, and he said because of that, first responders, the Red Cross and FEMA have set up stations here in the past during an emergency. "That used to be a window," said Dennis Rooy, Commander of the American Legion Post 36. "If there was a hurricane, it could have come through that window." Rooy said the decades-old building has a new roof, adding that it's vital to keep the power on at this place and he does that by keeping water away from the circuits. He also said the legion sometimes serves food to people during a storm when their power is out. "It's for anybody that needs something, they're welcome to come," Rooy said. "If we're able to cool, we'll do it for them." Both the legion and Sanchez's house are in the Edgewood neighborhood, which can be prone to flooding. Sanchez said the flooding is still bad, but added that the water subsides much faster now.
