FPL Group (FPL) reported earnings this morningand it was a strong quarter in a tough environment. The leadingprovider of wind and solar energy reported a non GAAP EPS number of.90/share beating estimates by .13/share.
It’s NextEra Energy Resources division which houses its wind andsolar operations produced good results with an EPS of .62/share (a 13%increase over the year ago quarter) however the gains were driven bynew investments in wind generation facilities. Growth in the existingportfolio declined over the year ago quarter.
There are quite a few one time events and acquisitions during thequarter, making an analysis of true organic growth difficult but all inall it was a strong quarter even if organic growth has stalled. It’stypical of the industry right now and not an FPL issue. What’simportant is what the company expects in the coming quarters and theyare raising estimates. For 2009, the company now sees EPS of $4.20 -4.40 and for 2010 the new range is $4.65 – 5.05 both of which assume nofurther deterioration in the economy.
“FPL Group had a very good first quarter, with adjusted earnings pershare rising 18 percent year over year, largely as a result of strongresults from our NextEra Energy Resources subsidiary. At Florida Power& Light, we announced proposed investments that will significantlyimprove the electrical system for our customers – specifically, alarge-scale deployment of ’smart grid’ technology in Miami, and a newnatural gas pipeline to provide increased energy security. As pleasedas we are with FPL Group’s current results, we are even more optimisticabout the future. The reason is simple: We believe that the policyclimate in the nation is trending in a direction highly favorable topower companies with low emissions profiles and significantclean-energy fleets,” said FPL Group Chairman and CEO Lew Hay.
FPL Group is trading off the highs of the morning but has broken outabove the 200 day moving average with heavy volume. It’s currently upabout 3.5%.