Shares of NextEra Energy (NYSE:NEE) gained about 7% yesterday after the company’s third-quarter earnings and revenues beat analysts’ expectations. The leading clean energy company witnessed strong growth in the renewables and storage origination businesses.
The company’s Q3 revenues came in at $7.17 billion, reflecting a jump of 6.7% year-over-year. The top-line growth can be attributed to higher revenues in the Florida Power & Light and NextEra Energy Resources segments. Meanwhile, NEE posted adjusted earnings of $0.94 per share, up 10.6% year-over-year. Analysts expected adjusted EPS of $0.88 on revenue of $7.07 billion.
As for the outlook, NextEra expects to report full-year 2023 and 2024 adjusted EPS in the range of $2.98 to $3.13 and $3.23 to $3.43, respectively. Additionally, for 2025 and 2026, NextEra Energy expects 6% to 8% growth compared to the 2024 adjusted EPS range.
It is worth mentioning that the company continues to project a 10% increase in its dividend per share every year through at least 2024 compared to 2022. NextEra’s dividend yield of 3.5% might continue to attract investors’ attention.
Following the earnings release, Wells Fargo analyst Neil Kalton reiterated a Buy rating on the stock with a price target of $84 (52.4% upside potential from the current level).
Is NEE a Good Buy Right Now?
Overall, the Street is optimistic about NextEra stock. It has a Strong Buy consensus rating based on 13 Buys and three Holds. NEE’s average price target of $74.73 implies an upside potential of 35.6% from current levels. Shares have declined nearly 33% so far this year.
Importantly, NEE stock has a “Perfect 10” Smart Score on TipRanks, which implies that the stock has the potential to beat the benchmark index.
