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NextEra Stock Higher After Adjusted Profit Beats Estimate

Shares of NextEra Energy rose after the company, one of the world’s largest utilities, reported adjusted profit that beat Wall Street's estimates.
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Shares of NextEra Energy  (NEE) - Get Free Report rose after the company, one of the world’s largest utilities, reported lower third-quarter profit and revenue.

Profit attributable to the Juno Beach, Fla., company totaled $447 million, or 23 cents a share, down from $1.23 billion, or 62 cents a share, in the year-earlier period.

To be sure, adjusted profit registered 75 cents a share, topping the FactSet analyst consensus of 72 cents. 

Operating revenue fell 9% in the quarter to $4.37 billion from $4.79 billion.

Net operating expenses rose to $4 billion from $3.77 billion.

NextEra left its long-term financial forecasts in place.

The company’s stock recently traded at $84.38, up 2.8%. It had climbed 6.3% in 2021 through Tuesday's close. 

NextEra’s Florida Power & Light is the largest rate-regulated electric utility in the U.S. And NextEra is the world’s biggest provider of solar and wind energy.

Prior to the earnings report, Morningstar analyst Andrew Bischof put fair value at $78 for the stock and assigned it a narrow moat.

“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,” he wrote in a commentary last month.

“NextEra's renewable energy business has a sustainable competitive advantage. This segment has secured some of the country's most desirable wind and solar generation sites, locking in 20-year-plus purchase power agreements with escalator clauses protecting returns.

“A large, diversified generation fleet gives this segment scale, cost, and flexibility advantages over smaller competitors.”