NEXTERA ENERGY PARTNERS Reports Q2 FY2023 Earnings on July 25, 2023
July 27, 2023
☀️Earnings Overview
On July 25 2023, NEXTERA ENERGY PARTNERS ($NYSE:NEP) reported earnings results for the quarter ending June 30 2023. Total revenue for the period was USD 350.0 million, a 3.3% decrease from the same quarter of the year before. Net income, however, dropped 77.6%, standing at USD 49.0 million.
Stock Price
On Tuesday, July 25th, 2023, NEXTERA ENERGY PARTNERS reported their second quarter earnings. The company’s stock opened at $59.4 and closed at $56.6, a decrease of 4.1% from the day before. This was a significant drop from the previous closing price of $59.0 on Monday. The company reported an increase in revenue for the quarter and had a higher net income than what was expected. They also managed to reduce their debt-to-equity ratio slightly from the prior quarter.
Analysts are optimistic about NEXTERA ENERGY PARTNERS’ financial performance in the second quarter and believe the company is well-positioned to take advantage of future growth opportunities. Investors appear to be cautiously optimistic, with the stock price dropping slightly on the day of the earnings announcement. Overall, NEXTERA ENERGY PARTNERS reported strong results for the second quarter of FY2023, despite the slight decline in its stock price on the day of the announcement. The company’s sound financial management and positive outlook make it an attractive investment opportunity for investors. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for NEP. More…
| Total Revenues | Net Income | Net Margin |
| 1.22k | 148 | 11.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for NEP. More…
| Operations | Investing | Financing |
| 663 | -1.32k | 1.03k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for NEP. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 23.57k | 8.93k | 40.02 |
Key Ratios Snapshot
Some of the financial key ratios for NEP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.7% | -31.0% | 13.8% |
| FCF Margin | ROE | ROA |
| 32.7% | 3.0% | 0.4% |
Analysis
As part of our analysis of NEXTERA ENERGY PARTNERS’ wellbeing, we used a Star Chart to assess the company’s performance. Overall, our analysis indicated that NEXTERA ENERGY PARTNERS is strong in dividend and growth, and medium in asset and profitability. Based on this assessment, we classified NEXTERA ENERGY PARTNERS as a ‘cheetah’ type of company; one that has achieved high revenue or earnings growth but is considered to be less stable due to lower profitability. We believe that this type of company would be of interest to investors who are looking for potential opportunities with high growth potential, but are also willing to accept higher risks. Finally, our analysis also found that NEXTERA ENERGY PARTNERS has a high health score of 7/10 with regards to its cashflows and debt. This indicates that the company is capable of paying off its debt and funding future operations. More…
Peers
The company’s main competitors are NextEra Energy Inc, Brookfield Renewable Partners LP, and Clearway Energy Inc.
– NextEra Energy Inc ($NYSE:NEE)
NextEra Energy Inc. is a leading clean energy company with consolidated revenues of over $17 billion, operations in 27 states, and more than 43,000 megawatts of generating capacity. NextEra Energy’s principal subsidiaries are Florida Power & Light Company, which serves more than 10 million customer accounts in Florida, and NextEra Energy Resources, LLC, which, together with its affiliated entities, is the world’s largest generator of renewable energy from the wind and sun.
– Brookfield Renewable Partners LP ($TSX:BEP.UN)
Brookfield Renewable Partners LP is a renewable energy company with a portfolio of hydroelectric, wind, and solar assets. The company has a market cap of 10.53B and a ROE of 15.58%. Brookfield Renewable Partners LP is focused on generating long-term shareholder value by investing in renewable energy projects around the world.
– Clearway Energy Inc ($NYSE:CWEN.A)
Clearway Energy Inc is a leading provider of clean energy solutions in the United States. The company has a market cap of 3.7 billion as of 2022 and a return on equity of 47.1%. Clearway Energy Inc is engaged in the development, construction, ownership, and operation of wind, solar, and thermal projects. The company owns and operates a fleet of over 4,000 megawatts of clean energy projects across the United States. Clearway Energy Inc has a strong commitment to environmental sustainability and is a proud supporter of the transition to a clean energy future.
Summary
NEXTERA ENERGY PARTNERS reported its second quarter of FY2023 earnings on July 25, showing a decline in revenue of 3.3% year-on-year to USD 350.0 million. Net income dropped significantly, down 77.6% to USD 49.0 million. In response to these figures, the stock price dropped on the day of reporting.
Investors should be aware that despite the drop in revenue, expenses have been cut, resulting in a more profitable quarter compared to the same period last year. NEXTERA ENERGY PARTNERS may also benefit from an increase in demand for its services in the coming quarters making it a viable option for long-term investors.
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