(Reuters) – NextEra Energy missed second-quarter profit estimates, hurt by higher interest rates and expenses in its renewable energy segment.
Higher interest rates, which the U.S. Federal Reserve began raising last year to curb inflation, have weighed on the utilities sector as they make dividend-paying stocks like REITs and utilities – also known as bond seekers – less attractive and increase borrowing costs. .
The world’s largest renewable energy company reported $802 million in interest expenses in the second quarter, compared with $135 million paid a year earlier.
Its quarterly revenue fell about 17% to $6.07 billion from a year earlier, below LSEG estimates of about $7.36 billion.
The company reported earnings of 96 cents per share on an adjusted basis, compared with estimates of 98 cents, according to LSEG data.
The Juno Beach, Florida-based company maintained its 2024 adjusted earnings per share forecast of between $3.23 and $3.43 per share.
(Reporting by Seher Dareen in Bengaluru; Editing by Shinjini Ganguli)
