FPL - FPL Group, Inc - generation, transmission, distribution and sale of electric energy - exceeded estimates in the past four quarters

FPL Group just keeps generating solid earnings growth year after year. Over the past 90 days, this year's earnings estimates have increased two cents to $3.45 per share. Earnings are slated to grow 10.4% next year. The company has exceeded earnings estimates in four straight quarters. The stock has an ROE of 13%, above the industry average of 10%. Full Analysis FPL Group, Inc. (FPL) is a public utility holding company. FPL Group's principal subsidiary, FPL, is engaged in the generation, transmission, distribution and sale of electric energy. FPL Group Capital, a wholly-owned subsidiary of FPL Group, holds the capital stock and provides funding for the operating subsidiaries other than FPL. In addition, FPL Group Capital formed a new subsidiary to sell wholesale fiber-optic network capacity. In late September, the company reaffirmed its earnings outlook for 2007 as well as 2008. FPL expects full-year 2007 earnings to come in the upper half of $3.35 to $3.45 per share. The company sees 2008 earnings ranging between $3.70 and $3.90 per share. Analysts are in agreement as evidenced by 2007 forecasts of $3.45 per share and projections for 2008 of $3.81. Three months ago, Wall street expectations stood at $3.43 for 2007 and at $3.74 for 2008. FPL exceeded analysts’ earnings expectations in the past four consecutive quarters. On Aug 3, the Board of Directors declared a quarterly cash dividend of 41 cents per common share of stock. The distribution represents the 247th consecutive quarterly dividend paid to stockholders. FPL has a current dividend yield of 2.6%. On Jul 30, FPL reported second-quarter earnings per share of 86 cents, which topped the Street’s estimate by seven cents and earnings of 66 cents per share in the prior-year period by 30.3%. Operating revenues grew to $3.93 billion from $3.81 billion in the second quarter of last year. In the last 12 months, the average number of FPL accounts rose by 95,000 or 2.2%. Chairman and CEO Lew Hay stated, "FPL Group delivered very good results overall in the second quarter of 2007, despite unfavorable weather impact at both FPL Energy and FPL. Being able to deliver strong earnings growth despite unfavorable weather demonstrates the robustness of FPL Group's business model." The company’s earnings per share are projected to grow 10% over the next 3-5 years, with the industry expected to grow by 7%. The company’s return on equity of 13% tops the industry’s average of 10%. Look for the release of third-quarter results on October 30, 2007. Analysts are expecting $1.22 per share, versus $1.15 last year. FPL has exceeded estimates by at least 7% in each of the past four quarters, so chances are good that it will do so again. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home