NextEra Energy: A Safer Way to Play Green Energy

Oct.31.10 | About: NextEra Energy, (NEE)

NextEra Energy (NYSE:NEE), the largest provider of wind and solar power in the US, reported results on Friday morning that beat analyst estimates and the company reported quarter over quarter revenue growth for the first in over a year. NEE reported a non GAAP EPS of $1.45/share vs the analyst expectation of $1.43 on revenues of $4.69 billion vs the expectation of revenues of $4.52 billion. (Click here for the Earnings Call Transcript.)

Other highlights from the quarter include:

  • continued expansion of wind energy fleet
  • received most of approval necessary for 250MW Genesis solar facility in California
  • Energy Resources results driven mainly by addition of new wind projects, improved performance of existing assets
  • wind energy assets increased by 1260MW in the past year contributing .05 to adjusted earnings, while existing wind energy assets contributed another .05
  • 680MW of new wind assets already in service or under construction to go online within a few months

Looking ahead, NextEra Energy expects non GAAP EPS for 2010 to be in the lower half of the previously disclosed range of $4.25 to $4.65. For 2011, the company sees EPS in a range of $4.25 to $4.55. Looking out further, it sees adjusted EPS growth at an overall average rate of 5 percent to 7 percent through 2014 from a 2009 base.

All in all, a decent quarter from NEE as it appears the wind energy business is doing much better in the US than it is for GE or Vestas (OTCPK:VWDRY). The stock is trading down a bit on the lukewarm guidance, but this is a solid blue chip type company with a solid dividend, and perhaps the safest way to play green energy.