In this day and age, quarterly earnings are arguably the most watched events in the stock market. And when a company reports its quarterly financial results, the numbers will be compared not just to their year-ago counterparts, but also to Wall Street’s expectations. There are many things that can affect a company’s stock price. But quite often, we see stocks surging on earnings beats and slipping on earnings misses.
NextEra Energy Inc (NYSE:NEE) recently reported financial results for the fourth quarter of 2018. For the quarter, the company generated $4.39 billion in revenue, representing a 9.5% increase year-over-year. Adjusted earnings came in at $1.49 per share, up 20.2% from the $1.24 per share earned a year ago. (Source: “NextEra Energy reports 2018 fourth-quarter and full-year financial results,” NextEra Energy Inc, January 25, 2019.) Double-digit growth in earnings, coupled with a near-double-digit increase in revenue, should cheer up investors. But as I said, in earnings season, companies also have a set of expectations to beat from Wall Street.
Source: Income Investors
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Posted by D4L | Thursday, February 21, 2019 | ArticleLinks | 0 comments »________________________________________________________________
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