Electric utility provider, NextEra Energy, Inc. (NEE) touched a 52-week high of $106.43 per share during the intraday session on Dec 19, 2014. The share price finally closed a tad lower at $105.87 with a traded volume of nearly 3.4 million shares.
Juno Beach, FL-based NextEra Energy reported strong third-quarter results. Quarterly earnings of $1.55 per share surpassed the Zacks Consensus Estimate by 0.65% and climbed 8.4% year over year. Operating revenue of $4,654 million also outpaced the Zacks Consensus Estimate by 6.4% and increased 5.9% from the prior year.
The company reported positive earnings surprises in two of the last four quarters with an average beat of 3.46%.
NextEra Energy is gaining popularity among investors interested in the utility space especially because of its clean energy focus. Over the last decade, the company has added more than 12,000 MWs of renewable power and has 11,462 MWs of stable long-term contracted projects. During the third quarter, the company signed contracts for the addition of 445 MW of renewable projects.
Recently, NextEra Energyannounced that it has entered into a definitive agreement to acquire Hawaiian Electric Industries, Inc. (HE) for a total consideration of $4.3 billion.NextEra Energy will modernize existing grids and incorporate more rooftop solar in Hawaii. This move is in sync with the company’s clean energy expansion initiative (read: NextEra Energy to Buy Hawaiian Electric Industries for $4.3B).
Apart from renewable ventures, NextEra Energy is keen on expansion initiatives and utilizes modern technologies, primarily at its Florida Power & Light Company (FPL). The company is on track with its threegeneration modernization projects at Port Everglades. The facilities are expected to start operations in mid-2016.
NextEra Energy currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Better-ranked stocks in the electric utility space include Black Hills Corp. (BKH) and PG&E Corp. (PCG). Both the stocks currently sport a Zacks Rank #1 (Strong Buy).
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