FPL Group (FPL) Tops Estimates With Strong Quarter, Fueled By NextEra Energy

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01:20:37 pm on January 27, 2009

FPL Group (FPL), called the Wal Mart of Wind by Barron’s and the largest producer of wind and solar energy in the US, reported earnings this morning that topped analyst estimates at .90/share and represents 25% growth over the year ago quarter on revenue growth of 9%.  All in all, a very good quarter in a tough environment. The company remains comfortable with expectations for 2009 and 2010 with EPS guidance of $4.05 – $4.25 for 09 and $4.50 – $4.90 for 2010.

Growth was fueled by their NextEra Energy Resources subsidiary, the alternative energy arm of the company.  NER profits increased to .55/share in the quarter vs .34/share in the year ago quarter, a 62% profit increase.  Growth was driven by new assets, primarily wind projects and the Point Beach nuclear power plant, and very strong performance by existing assets, notably those in the New England and Texas regions.

In 2008, NER added about 1300 MW of wind capacity in North America with new projects in Iowa, North Dakota and Texas as well as its first acquisition of wind assets in Canada.  The company expects to add another 1100 MW of wind capacity this year and believes its goal of adding 7000 to 9000 MW of capacity by 2012 is still realistic. 

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