NextEra Energy Partners (NEP) Down 0.2% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for NextEra Energy Partners (NEP). Shares have lost about 0.2% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is NextEra Energy Partners due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
NextEra Energy Partners Posts Loss in Q1, Lag on Revenues
NextEra Energy Partners, LP incurred first-quarter 2019 loss of 38 cents per unit, against the Zacks Consensus Estimate of earnings of 52 cents. In the year-ago quarter, the partnership delivered earnings of $1.22 per unit.
Revenues
In the quarter, the partnership generated revenues of $177 million that missed the Zacks Consensus Estimate of $316 million by 44%. Moreover, the top line declined 16.5% on a year-over-year basis. The downside was caused by lower sales in the Renewable Energy segment.
Quarterly Highlights
In the quarter, NextEra Energy Partners’ total adjusted operating expenses were $143 million, up 19.2% year over year.
The partnership declared a quarterly distribution of 48.25 cents per common unit, up 15% from prior-year quarter’s figure.
Financial Condition
NextEra Energy Partners had cash and cash equivalents of $127 million as of Mar 31, 2019 compared with $147 million as of Dec 31, 2018.
Long-term debt was $2,719 million as of Dec 31, 2018 compared with $2,728 million as of Dec 31, 2018.
Net cash from operating activities at the end of the first quarter was $19 million, lower than $53 million in the year-ago quarter.
At the end of the quarter, the firm’s total capital expenditure was $3 million compared with $4 million in the year-ago quarter.
Guidance
NextEra Energy Partners continues to expect 12-15% annual growth in limited partner distributions through 2023. The partnership continues to expect 2019 distribution growth at 15%.
The partnership continues to expect adjusted EBITDA of $1.2-$1.375 billion for 2019 and CAFD in the range of $485-$555 million that includes all contributions from PG&E-related projects.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -8.22% due to these changes.
VGM Scores
At this time, NextEra Energy Partners has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, NextEra Energy Partners has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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