Why NextEra Energy Inc (NYSE: NEE) stock is under pressure

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NextEra Energy Inc (NYSE: NEE) stock fell over 2.5% on 23rd April, 2020 (as of 11:24 am GMT-4 ; Source: Google finance) after the company posted the first quarter of FY 20. The company has reported the net income of $421 million compared to $680 million, in the year-ago period. FPL’s capital expenditures were approximately $1.4 billion for the first quarter and the company projects the full-year capital investments to be between $5.8 billion and $6.3 billion.

For 2020, the company continues to expect adjusted earnings to be in the range of $8.70 a share to $9.20 a share. The company continues to expect adjusted per-share earnings to grow at a compound annual rate in the range of 6% to 8% through 2021 from the 2018 per-share earnings of $7.70, with the addition of 15 cents and 20 cents in 2020 and 2021, respectively, from Florida acquisitions. For 2022, the company expects adjusted earnings per share to grow in the range of 6% to 8% from 2021, translating into $10 to $10.75.

Additionally, in the mid-February, the company had issued $2.5 billion in equity units to add additional cushion against the credit metrics and further supplement the liquidity. Since the market disruption began, the company has further improved its liquidity position, with the additional approximately $4 billion in longer-term financings, including $1.1 billion FPL first mortgage bonds, $1.25 billion of Capital Holdings debentures and an additional $1.8 billion in Capital Holdings term loans. After these issuances, NextEra Energy now has about $12 billion in liquidity to underpin the largest capital investment program.

Meanwhile, both FPL and Gulf Power, have suspended electric disconnections during the state of emergency aroused due to COVID-19 pandemic to ensure the customers have continued access to power regardless of their economic circumstances. From next month, the typical FPL and Gulf Power residential customers will receive a one-time bill decline in the range of approximately 25% and 40% respectively, as an accelerated flow back of lower fuel costs.

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