It has been about a month since the last earnings report for NextEra Energy Partners (NEP). Shares have lost about 22.1% in that time frame, underperforming 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 its most recent earnings report in order to get a better handle on the important catalysts.

NextEra Energy Partners Q3 Earnings & Revenues Lag Estimates

NextEra Energy Partners, LP recorded third-quarter 2024 operating loss of 43 cents per unit, which missed the Zacks Consensus Estimate for earnings of 51 cents by 184.3%. The bottom line also deteriorated from the year-ago quarter’s reported earnings of 57 cents.

Revenues

The firm’s operating revenues of $319 million missed the Zacks Consensus Estimate of $325 million by 1.88%. The figure, however, increased 3.6% from $308 million registered a year ago.

Highlights of the Release

Total operating expenses were $284 million, up 2.9% from the year-ago level of $276 million. This was due to higher operations and maintenance expenses, which totaled $128 million, up 5.8% from the prior-year recorded figure of $121 million.

The firm reported an operating income of $49 million compared with $32 million in the corresponding period of 2023.

NextEra Energy Partners announced plans to repower an additional nearly 225 megawatts of wind facilities through 2026. The partnership's total backlog of wind repowerings is now nearly 1.6 gigawatts (GW) against its updated target of 1.9 GW.

Financial Condition

The firm had cash and cash equivalents of $290 million as of Sept. 30, 2024, compared with $274 million as of Dec. 31, 2023.

Long-term debt totaled $5.07 billion as of Sept. 30, 2024, compared with $4.94 billion as of Dec. 31, 2023.

Net cash provided by operating activities for the first nine months of 2024 totaled $517 million compared with $552 million a year ago.

Distribution Update

NEP declared a quarterly distribution of 91.75 cents per common unit corresponding to an annualized rate of $3.67 to its unit holders. This declaration reflects an annualized increase of nearly 6% from the year-ago recorded figure. The distribution will be payable on Nov. 14, 2024, to unitholders of record as of Nov. 6, 2024.

Guidance

NextEra Energy Partners continues to expect its run-rate for 2024 adjusted EBITDA in the $1.9-$2.1 billion range.

 

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

The consensus estimate has shifted 9072.23% due to these changes.

VGM Scores

At this time, NextEra Energy Partners has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. 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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