Shares of NextEra Energy (NYSE:NEE) declined nearly 9% on Wednesday following the release of mixed fourth-quarter results. The leading clean energy company witnessed strong growth in the Florida Power & Light and NextEra Energy Resources segments.
Q4 revenues came in at $6.16 billion, reflecting a jump of 22% year-over-year. The top line, however, fell short of the analysts’ estimates of $6.3 billion. The revenue growth can be attributed to the expanded customer base and favorable weather conditions.
Meanwhile, the company posted adjusted earnings of $0.51 per share, up 24% year-over-year. Also, the reported figure is greater than the Street’s estimate of $0.49 per share.
As for the outlook, NextEra expects to report full-year 2023 adjusted earnings in the range of $2.98 to $3.13. The Energy Resources segment is expected to contribute significantly to adjusted EPS in 2023.
Furthermore, the company disclosed plans to raise the dividend by 10% every year through at least 2024. NextEra’s outstanding payout ratio of 60.5% might continue to attract investors’ attention.
Is NEE a Buy or Sell?
Overall, the Street is optimistic about the stock and has a Strong Buy consensus rating based on eight unanimous Buys. NEE’s average price target of $97.13 implies upside potential of 26.8% from current levels. Shares have gained nearly 8% over the past year.