NextEra Energy, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year
It's been a good week for NextEra Energy, Inc. (NYSE:NEE) shareholders, because the company has just released its latest third-quarter results, and the shares gained 2.9% to US$82.10. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at US$8.1b, statutory earnings beat expectations by a notable 93%, coming in at US$2.28 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the most recent consensus for NextEra Energy from 17 analysts is for revenues of US$34.3b in 2027. If met, it would imply a decent 19% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to plunge 21% to US$4.38 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$34.5b and earnings per share (EPS) of US$4.37 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
View our latest analysis for NextEra Energy
The analysts reconfirmed their price target of US$94.58, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on NextEra Energy, with the most bullish analyst valuing it at US$110 and the most bearish at US$56.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await NextEra Energy shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that NextEra Energy's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 9.5% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect NextEra Energy to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$94.58, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for NextEra Energy going out to 2028, and you can see them free on our platform here..
Before you take the next step you should know about the 2 warning signs for NextEra Energy (1 doesn't sit too well with us!) that we have uncovered.
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