Summary
NextEra Energy, Inc. (NEE) filed an 8-K on June 3, 2013, primarily to disclose information for upcoming investor meetings in Europe. The key takeaway for investors is the reaffirmation of the company's previously stated long-term financial outlook. NEE expects its 2013 adjusted earnings per share (EPS) to be between $4.70 and $5.00. Furthermore, the company projects an average annual adjusted EPS growth rate of approximately 5-7% through 2016, based on a 2012 adjusted EPS. This growth trajectory is anticipated to result in 2016 adjusted EPS ranging from $5.50 to $6.00.
Key Highlights
- 1Reaffirms 2013 adjusted EPS expectations of $4.70 - $5.00.
- 2Expects average annual adjusted EPS growth of 5-7% through 2016.
- 3Projects 2016 adjusted EPS in the range of $5.50 - $6.00.
- 4Adjusted EPS excludes certain items like accounting standard changes, mark-to-market effects of non-qualifying hedges, and nuclear decommissioning fund impairments.
- 5Specific 2013 adjustments exclude gains/losses from Maine asset sales and impairment charges on Spanish solar facilities.
- 6Assumptions for projections include normal weather, stable economic conditions, supportive public policy for renewables, access to capital, and no significant acquisitions/divestitures or adverse litigation.
- 7The company provides extensive cautionary statements and risk factors that could materially impact future results.
Frequently Asked Questions
NextEra Energy is reaffirming its 2013 adjusted EPS expectations of $4.70 to $5.00 and anticipates average adjusted EPS growth of approximately 5-7% per year through 2016, leading to an adjusted EPS of $5.50 to $6.00 for 2016.
Adjusted EPS excludes the cumulative effect of adopting new accounting standards, the unrealized mark-to-market effect of non-qualifying hedges, and net other-than-temporary impairment losses on securities held in nuclear decommissioning funds. For 2013 specifically, it also excludes certain after-tax gains/losses from the sale of Maine hydropower assets, a loss associated with selling merchant fossil assets in Maine, and impairment charges on Spanish solar facilities.
The projections assume normal weather and operating conditions, no significant further decline in the national or Florida economy, supportive commodity markets, public policy support for renewable energy development, market demand and transmission expansion for renewables, access to capital at reasonable costs, no acquisitions or divestitures, no adverse litigation decisions, and no changes to governmental tax policy or incentives.
Investors can find more detailed information in NextEra Energy's cautionary statements and risk factors section within this 8-K filing, as well as in their annual report on Form 10-K for the year ended December 31, 2012, and other SEC filings. Presentation materials are also available on the company's investor relations website.