Company Reports

We are maintaining our $71 per share NextEra Energy fair value estimate after the company reported first-quarter operating earnings of $0.91 per share, up from $0.84 in the same period last year. Management reaffirmed 6% to 8% annual earnings growth expectations through 2026. We expect the company to achieve the midpoint.

Data center electricity demand growth is a key source of upside for US utilities that we don't think the market appreciates. We consider the sector 9% undervalued as of April 8 in part because we expect electricity demand growth to top market expectations, requiring substantial energy infrastructure investment and boosting utilities' earnings growth.

We are maintaining our $71 per share fair value estimate for NextEra Energy after the Federal Election Commission voted to close the file regarding allegations that subsidiary Florida Power & Light violated the Federal Election Campaign Act. A nonprofit organization filed the complaint in October 2022. Our narrow moat and medium uncertainty risk ratings remain unchanged.

NextEra Energy's high-quality regulated utility in Florida and fast-growing renewable energy business give investors the best of both worlds: a secure dividend and industry-leading renewable energy growth potential.

We are maintaining our $74 per share NextEra Energy fair value estimate after the company reported full-year operating earnings of $3.17, up from $2.90 per share in 2022. Earnings exceeded management's 2023 EPS guidance of $2.98 to $3.13.

With the U.N. Climate Change Conference, otherwise known as COP28, starting this week, we are reasserting our view that the market underappreciates utilities' critical role in limiting global warming.

NextEra Energy's high-quality regulated utility in Florida and fast-growing renewable energy business give investors the best of both worlds: a secure dividend and industry-leading renewable energy growth potential.

We are lowering our NextEra Energy fair value estimate to $74 per share from $82 after incorporating lower allowed returns at Florida Power & Light to reflect ongoing regulatory risk relating to past campaign finance practices. Our narrow moat and medium uncertainty rating remain unchanged.

NextEra Energy's high-quality regulated utility in Florida and fast-growing renewable energy business give investors the best of both worlds: a secure dividend and industry-leading renewable energy growth potential.

We are maintaining our $82 fair value estimate for narrow-moat NextEra Energy after the company reported third-quarter operating earnings per share of $0.94, up from $0.85 in the same quarter last year.

We are reaffirming our fair value estimates and economic moat ratings for all U.S. utilities after the sector fell nearly 5% on Monday. We think the sector's 11% drop since last week offers a rare opportunity for investors to buy high-quality utilities at very attractive prices.

We are maintaining our $82 per share NextEra Energy fair value estimate after the company lowered the long-term growth rate assumptions for its partially owned NextEra Energy Partners, or NEP. Our narrow moat rating is unchanged.

We are maintaining our $82 per share NextEra Energy fair value estimate after its Florida Power and Light, or FPL, subsidiary announced an agreement to sell its Florida City Gas, or FGC, subsidiary to Chesapeake Utilities Corporation for $923 million. Our narrow moat remains unchanged.

NextEra Energy's high-quality regulated utility in Florida and fast-growing renewable energy business give investors the best of both worlds: a secure dividend and industry-leading renewable energy growth potential.

We are maintaining our $82 fair value estimate for NextEra Energy after the company reported second-quarter operating earnings per share of $0.88, up from $0.81 in the year-ago quarter. Management reaffirmed its guidance for 2023 EPS of $2.98-$3.13, in line with our estimate, and 6%-8% earnings growth through 2026; we expect the company to achieve the high end of the latter range. Our narrow economic moat and stable moat trend ratings are unchanged.

We are maintaining our $82 per share NextEra fair value estimate after the company reported first-quarter operating earnings of $0.84, up from $0.74 per share in the same year-ago quarter. Management reaffirmed its 2023 EPS guidance of $2.98 to $3.13 per share, in line with our estimate, and the company's 6% to 8% earnings growth expectations through 2026, which we expect the company to achieve the high end of the range.

NextEra Energy's high-quality regulated utility in Florida and fast-growing renewable energy business give investors the best of both worlds: a secure dividend and industry-leading renewable energy growth potential.

NextEra Energy's high-quality regulated utility in Florida and fast-growing renewable energy business give investors the best of both worlds: a secure dividend and industry-leading renewable energy growth potential.

We are maintaining our $82 per share NextEra fair value estimate after the company reported fourth-quarter operating earnings of $2.90 per share, compared with $2.55 per share in the same year-ago period. Management reaffirmed its 2023 EPS guidance of $2.98 to $3.13 per share, in line with our estimate. Management extended the company's 6% to 8% earnings growth expectations through 2026. We expect the company to achieve the high end of the range, which is consistent with management's view.

We are increasing our NextEra fair value estimate to $82 per share from $78 after increasing our renewable development expectations in our forecast. Our narrow economic moat and stable moat trend ratings remain unchanged.