(Reuters) – NextEra Energy missed profit estimates for the second quarter, hurt by higher interest rates and expenses in its renewables segment.
Higher interest rates, which the U.S. Federal Reserve started raising last year to curb inflation, have weighed on the utilities sector, as they make dividend-paying stocks such as REITs and utilities – also known as bond proxies – less attractive and drive up borrowing costs.
The world’s largest renewables company reported $802 million in interest expenses in the second quarter, compared with $135 million it paid a year earlier.
Its quarterly revenue fell about 17% to $6.07 billion from a year earlier, below LSEG estimates of around $7.36 billion.
The company reported a profit 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 between $3.23 and $3.43 per share.
(Reporting by Seher Dareen in Bengaluru; Editing by Shinjini Ganguli)
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