NextEra Energy Going to Report Q3 Earnings: How to Play the Stock?

NextEra Energy (NEE) is scheduled to release its third-quarter 2025 results on Oct. 28, before market open. The Zacks Consensus Estimate for earnings is currently pegged at $1.04 per share on revenues of $8.12 billion.

Third-quarter earnings estimates have been unchanged over the past 60 days. The bottom-line projection indicates an increase of 0.97% from the year-ago number. The Zacks Consensus Estimate for quarterly revenues indicates a year-over-year increase of 7.27%.

NEE Stock’s Earnings Surprise History

NextEra Energy’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.51%.

What the Zacks Model Unveils

Our proven model does not predict an earnings beat for NextEra Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

NEE’s Earnings ESP: NextEra Energy has an Earnings ESP of 0.00%.

Zacks Rank of NEE: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Some companies in the same industry with the right combination of the two factors for an earnings surprise this season are Edison International (EIX), Portland General Electric (POR) and Duke Energy Corporation (DUK). EIX, POR and DUK have an Earnings ESP of +7.15%, +0.68% and +1.59%, respectively, and carry a Zacks Rank #2 each.

Factors Likely to Have Shaped NEE Stock’s Q3 Earnings

NextEra Energy’s subsidiary, Florida Power & Light Company (“FPL”), has been leveraging Florida’s robust economic growth, which continues to boost customer additions each quarter. By investing strategically in capital projects, FPL delivers reliable service while keeping electricity bills about 40% below the national average. This has been helping attract and retain more consumers as it is gradually driving fuel costs out of customer bills by adding more renewable assets.

FPL holds a strong foothold in Florida’s utility market, supported by long-term franchise agreements with various municipalities. These 30-year exclusive contracts provide service rights within defined areas, ensuring operational stability and long-term growth opportunities for the company.

NEE’s Energy Resources unit has been steadily expanding its portfolio to keep pace with growing customer demand. With a signed contract backlog exceeding 30 gigawatts, this NextEra Energy unit is well-positioned to generate strong revenue growth over the coming years as the backlog is executed. The addition of new renewable energy and energy storage projects is primarily fueling this expansion.

NextEra Energy has been capitalizing on rising energy demand, fueled by the expansion of data centers and higher power needs in the Permian Basin. Supported by a strong supply chain, the company continues to deliver affordable electricity through scalable, low-cost renewable energy projects. NextEra Energy is expected to have benefited from rising U.S. power demand, supported by its scale, expertise and advanced technology.

NEE Stock’s Price Performance

NEE’s shares have gained 23.8% in the past six months compared with the Zacks Utility – Electric Power industry’s rise of 8.4%.

NEE Stock Returns Better Than Its Industry

NextEra Energy’s trailing 12-month return on equity (“ROE”) is 12.31%, ahead of the industry average of 10.35%. ROE is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The company's current ROE indicates that it is using shareholders’ funds more efficiently than peers.

NextEra Energy’s Shares Trading at a Premium

The company is currently valued at a premium compared with its industry on a forward 12-month P/E basis. NextEra Energy is trading at 21.24X compared with its industry’s 15.52X.

Investment Thesis

NextEra Energy is gaining from Florida’s robust economic growth, which is fueling rising demand and expanding its customer base. The company’s continued investments in renewable energy and battery storage projects further enhance its capacity to provide reliable and sustainable power.

Through disciplined expense management, NextEra Energy keeps utility bills well below the national average, enhancing the affordability of its services and driving consistent customer growth.

A decline in interest rates and the potential of further decline in interest rates could benefit the capital-intensive utilities sector, including NextEra Energy. However, given the stock's current premium valuation, holding existing positions may be the most prudent approach for now.

Wrapping Up

NextEra Energy maintains steady performance, driven by growing demand for clean energy across its service areas. The company continues to expand its renewable portfolio to meet this demand, while Florida’s robust economic growth creates additional opportunities for expansion.

With this increasing demand and a steadily expanding customer base, maintaining an investment in NextEra Energy appears to be a wise move, as it is well-positioned to achieve further growth from the current levels.

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This article originally published on Zacks Investment Research (zacks.com).

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