NextEra Energy Q3 earnings on deck: What to expect

NextEra Energy (NYSE:NEE) is set to post third quarter results on Wednesday, before the market opens.

Wall Street expects the U.S. clean energy developer to post EPS of $0.99, implying a 5.3% rise, while revenue is expected to rise 11.7% to $8.01 billion.

The demand for electricity, fuelled by the growth in data centers and AI and the continued expansion of its renewable energy sources portfolio, is expected to benefit the company.

Jefferies’ Julien Dumoulin-Smith said NextEra is well positioned to benefit from the acceleration of renewables demand, but this growth will start materializing beyond the current 2024-27 plan.

BMO analyst James Thalacker said it expects the company’s management to reiterate its 6-8% LT growth outlook and 2024-2028 EPS.

“We expect investors’ primary focus will be NEE’s net backlog additions, initial FPL storm cost estimates, and updated views on the impact of the November election,” noted Thalacker.

Earlier in July, Florida-based NextEra posted second-quarter profit ahead of expectations, while revenue fell behind estimates.

Over the last two years, NEE has beaten EPS estimates 100% of the time and has beaten revenue estimates 50% of the time.

Seeking Alpha analysts and Seeking Alpha’s Quant ratings are cautious and consider the stock a Hold. However, Wall Street analysts are bullish and rated it a Buy.

Over the last three months, EPS estimates have seen four upward revisions, compared to three downward, while revenue estimates have been revised upwards twice versus two downward moves.

The stock has gained nearly 38% so far this year, compared to the about 23% rise in the broader S&P500 Index.