E NextEra Energy Partners: Should You Buy The Pullback?

Shares of clean energy stock NextEra Energy Partners (NEP) have pulled back by more than 4% since Wednesday, after the company’s most recent quarterly results. 

The Florida-based renewable energy company registered strong earnings growth in earnings during Q2 after the adjusted net income topped $1.13 billion up from $989 million in the same quarter for the previous year. This equates to EPS of $2.35 up from $2.08 in the previous period.

The company’s headquarters continues to be the main income generator. In the second quarter of 2019, NextEra Energy’s Florida Power & Light (FPL) unit posted a net income of $669 million or $1.37 in EPS after adding more than 100,000 new customers from the previous second quarter. Last year, the company acquired Gulf Power, which added $58 million in net income or $0.12 per share in the recently concluded quarter.

On the other hand, NextEra Energy’s resources segment saw a net income of $448 million or $0.93 per share of the adjusted earnings, which represents a 12% year-over-year growth. 

The growing appetite for clean energy

The company’s management noted that NextEra Energy witnessed an overall growth of about 13% in adjusted earnings on a year-over-year basis and expects continued growth of mid-high single-digit annually through 2021. The company continues to capitalize on the growth of the clean energy market in the US as more people embrace measures to curb climate change. 

The corporate sector is also becoming more involved. Some companies now are nearly 100% reliant on clean energy for their operations. According to reports on how the corporate sector is investing in clean energy, at least 20 of the Fortune 500 companies have committed to powering all their operations with renewable energy. This could play a crucial role in expanding the addressable market for clean power. But is there a twist to the story?

Potential bottlenecks

While energy from fossil fuels like coal continue to witness a rapid decline in the market share, this decline is not all attributed to the increasing use of renewable energy. In fact, renewable energy could face a potential slowdown in growth rate in the coming years if what industry experts are suggesting turns out to be true.

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Disclaimer: The material appearing on this article is based on data and information from sources I believe to be accurate and reliable. However, the material is not guaranteed as to accuracy nor ...

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