FPL Group (FPL) Missed Earning Estimates & Guided Lower

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06:23:10 pm on October 27, 2009

The nation’s largest provider of renewable energy power disappointed investors this morning by missing analyst estimates and guiding lower for this year and next.  FPL Group (FPL) reported a non GAAP EPS of 1.38/share, missing estimates by .03.  Revenues were disappointing as well coming in at $4.47 billion which was a 17% decline from the year ago quarter.  To make matters worse, the company is lowering guidance.  For 2009, the company now expects an EPS of $4.10 – 4.20 vs previous estimates of $4.20 – 4.40 and for 2010 anticipates EPS to be in the range of $4.25 – 4.85 vs previous estimates of $4.65 – 5.05. 

Here are some highlights from the quarter:

– Florida Power & Light continues to weigh on the company while its NextEra Energy Resources subsidiary continues to grow (EPS growth of 21% over year ago quarter)
– Florida’s economy continues to impact company with 9000 fewer accounts this quarter than last quarter
– FPL’s DeSoto Solar Energy Center (currently nation’s largest solar plant) begins providing power to 3000 homes
– NextEra on track to add 1170MW of wind energy this year

“Going forward, we believe it is clear that the United States is moving inexorably toward a carbon-constrained world. As a result of the investments we are continuing to make in clean energy, we believe we are well positioned for a future where carbon carries a cost,” said Lew Hay.

Shares of FPL Group recovered off the lows of the day and held in quite well today, down just under 3%.

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