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Power & Politics: Live from First Ministers' Meeting

Power & Politics: Live from First Ministers' Meeting

CBC02-06-2025
Watch Power & Politics with David Cochrane live from Saskatoon, where Prime Minister Mark Carney and the premiers are wrapping up a meeting focused on internal trade and nation-building projects.
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NextEra Energy is Likely to Beat Q2 Earnings: How to Play the Stock?
NextEra Energy is Likely to Beat Q2 Earnings: How to Play the Stock?

Globe and Mail

time13 minutes ago

  • Globe and Mail

NextEra Energy is Likely to Beat Q2 Earnings: How to Play the Stock?

NextEra Energy NEE is scheduled to release its second-quarter 2025 results on July 23, before market open. The Zacks Consensus Estimate for earnings is currently pegged at $1.01 per share on revenues of $7.27 billion. Second-quarter earnings estimates have been revised upward by 2% over the past 60 days. The bottom-line projection indicates an increase of 5.21% from the year-ago number. The Zacks Consensus Estimate for quarterly revenues indicates a year-over-year increase of 19.74%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) NEE Stock's Earnings Surprise History NextEra's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.58%. What the Zacks Model Unveils Our proven model predicts a likely earnings beat for NextEra this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is the case here, as you can see below. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Earnings ESP: NextEra has an Earnings ESP of +1.98%. Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here. Some companies in the same industry with the right combination of the two factors for an earnings surprise this season are Entergy Corporation ETR, Xcel Energy XEL and Vistra Corp. VST. ETR has an Earnings ESP of +5.26% and carries a Zacks Rank #2. XEL and VST have an Earnings ESP of +1.76% and +1.14%, respectively, and carry a Zacks Rank #3 each. Factors Likely to Have Shaped NEE Stock's Q2 Earnings NextEra's subsidiary, Florida Power & Light Company ('FPL'), is capitalizing on Florida's strengthening economy, which is driving increased demand as new customers are added each quarter. FPL continues to invest wisely in capital projects that benefit its customers while maintaining electricity bills nearly 40% below the national average. Lower electricity bill and high-quality services helps FPL attract additional consumers. NextEra's subsidiary, FPL, has established a dominant presence in Florida's utility space. This position is largely underpinned by long-term franchise agreements with numerous municipalities that grant FPL exclusive rights to provide electric service within specific areas. These agreements typically span 30 years, offering a stable and predictable operating environment and the company is expected to gain from these existing contracts. NextEra's Energy Resources unit is steadily expanding its portfolio to keep pace with growing customer demand. With over 28 gigawatts of signed contract backlog, the unit has strong visibility into the continued growth of its clean energy capacity. This expansion is primarily fueled by the addition of new renewable energy and energy storage projects. NextEra is benefiting from growing energy demand driven by the rapid expansion of large data centers and increased power needs from oil and gas operations in the Permian Basin. At the same time, the company remains committed to deploying low-cost, quickly scalable renewable energy solutions that help keep electricity prices affordable for consumers. Positioned strongly to leverage the anticipated surge in U.S. power demand, NextEra stands out due to its scale, deep industry expertise, and advancing technology. As its renewables and energy storage portfolio continues to grow, the company is increasingly well-equipped to meet future energy needs efficiently and sustainably. NEE Stock's Price Performance NEE shares have gained 13.9% in the past three months against the Zacks Utility – Electric Power industry's decline of 0.3%. Image Source: Zacks Investment Research NEE Stock Returns Better Than Its Industry NextEra's trailing 12-month return on equity (ROE) is 12.06%, ahead of the industry average of 10.41%. ROE is a financial ratio that measures how well a company uses its shareholders' equity to generate profits. The company's current ROE indicates that it is using shareholders' funds more efficiently than its peers. NextEra's Shares Trading at a Premium The company is currently valued at a premium compared to its industry on a forward 12-month P/E basis. NextEra is trading at 19.8X compared with its industry's 14.77X. Investment Thesis NextEra continues to benefit from Florida's strengthening economy, which is driving customer growth and boosting demand for its services. Additionally, NextEra's ongoing investments in renewable energy projects and the expansion of battery storage capacity will further strengthen its ability to deliver clean, reliable power. NextEra's effective expense management allows it to maintain utility bills significantly below the national average, making its services more attractive to customers and supporting steady customer growth. A potential decline in interest rates could further benefit the capital-intensive utilities sector, including NextEra. However, given the stock's current premium valuation, holding existing positions may be the most prudent approach for now. Wrapping Up NextEra maintains steady performance, supported by increasing demand for clean energy across its service areas. The company is consistently expanding its clean energy portfolio to keep pace with this rising demand. Florida's strong economic growth continues to present new opportunities for expansion. With this increasing demand and a steadily expanding customer base, maintaining an investment in NextEra appears to be a wise move, as the company is well-positioned to achieve further growth from its current levels. One Big Gain, Every Trading Day To help you take full advantage of this market, you're invited to access every stock recommendation in all our private portfolios - for just $1. Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That's about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%. Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Xcel Energy Inc. (XEL): Free Stock Analysis Report NextEra Energy, Inc. (NEE): Free Stock Analysis Report Entergy Corporation (ETR): Free Stock Analysis Report Vistra Corp. (VST): Free Stock Analysis Report

VZ Surpasses Q2 Earnings Estimates on Solid Wireless Traction
VZ Surpasses Q2 Earnings Estimates on Solid Wireless Traction

Globe and Mail

time13 minutes ago

  • Globe and Mail

VZ Surpasses Q2 Earnings Estimates on Solid Wireless Traction

Verizon Communications Inc. VZ recorded strong second-quarter 2025 results with adjusted earnings and revenues beating the respective Zacks Consensus Estimate. The company recorded industry-leading wireless service revenues of $20.9 billion, up 2.2% year over year. Verizon registered solid broadband growth with total fixed wireless access net additions of 278,000, growing the subscriber base to more than 5.1 million. The company remains well-positioned to achieve its target of 8 to 9 million fixed wireless access subscribers by 2028. Net Income On a GAAP basis, net income in the quarter was $5.12 billion or $1.18 per share compared with $4.7 billion or $1.09 per share in the prior-year quarter. The improvement was primarily attributable to top-line growth. Excluding non-recurring items, quarterly adjusted earnings were $1.22 per share compared with $1.15 in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 4 cents. (See the Zacks Earnings Calendar to stay ahead of market-making news.) Revenues Quarterly total operating revenues improved 5.2% to $34.5 billion with growth in service revenues and higher wireless equipment revenues driven by targeted pricing actions, customer growth, sales of perks and add-on services and growth in fixed wireless access. The top line beat the consensus estimate of $33.58 billion. Quarterly Segment Results Consumer: Total revenues from this segment improved 6.9% year over year to $26.65 billion on wireless equipment revenues. The segment revenues exceeded our estimate of $25.63 billion. Service revenues were up 2.1% to $20.26 billion, while wireless equipment revenues improved 29.6% to $5.37 billion. Other revenues totaled $1.02 billion, up 9.2% year over year. Wireless retail postpaid churn was 1.12%, while retail postpaid phone churn was 0.9%. The company recorded 28,000 Fios Internet net additions as high demand for reliable fiber optic broadband was spurred by higher video consumption. Verizon delivered 293,000 broadband net additions in the quarter. However, it registered 62,000 Fios Video net losses in the quarter, reflecting the ongoing shift from traditional linear video to over-the-top offerings. The segment's operating income increased 0.5% to $7.64 billion with a margin of 28.7%. EBITDA improved 2.1% to $11.22 billion with a margin of 42.1% compared with 44.1% in the prior-year quarter due to lower costs of wireless equipment. Business: The segment revenues were down 0.3% to $7.27 billion due to lower wholesale and enterprise and public sector revenues, partially offset by growth in business markets and other revenues. It was also lower than our estimates of $7.29 billion, largely due to challenging macroeconomic conditions. The segment had 65,000 wireless retail postpaid net additions in the quarter, including 42,000 postpaid phone net additions. Wireless retail postpaid churn was 1.61%, while retail postpaid phone churn was 1.26%. Fixed wireless broadband net additions were 114,000 for the quarter. Operating income improved to $638 million from $500 million in the year-ago quarter with respective margins of 8.8% and 6.8%. Segment EBITDA was up 5.8% to $1.67 billion owing to an improvement in wireless service revenues for a margin of 22.9% compared with 21.6% in the year-earlier quarter. Other Quarterly Details Total operating expenses were up 5.4% to $26.33 billion, while operating income improved 4.5% to $8.17 billion. Consolidated adjusted EBITDA increased to $12.81 billion from $12.3 billion, led by wireless service revenue growth and perceived benefits from lower upgrade volumes for respective margins of 37.1% and 37.5%. Cash Flow & Liquidity Verizon generated $16.76 billion of net cash from operating activities for the first six months of 2025. Free cash flow was $5.17 billion for the quarter compared with $5.8 billion in the prior-year period. As of June 30, 2025, the company had $3.43 billion in cash and cash equivalents with $123.93 billion of long-term debt. Guidance For 2025, Verizon continues to expect wireless service revenue growth in the range of 2%-2.8%. However, adjusted EBITDA is expected to grow 2.5%-3.5%, up from prior expectations of 2%-3.5%. The company expects adjusted earnings to grow 1-3% range with a cash flow of $37-$39 billion on capital expenditures of $17.5-$18.5 billion. Zacks Rank Verizon currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Upcoming Releases Arista Networks Inc. ANET is scheduled to release second-quarter 2025 earnings on Aug. 5. The Zacks Consensus Estimate for earnings is pegged at 65 cents per share, suggesting a growth of 25% from the year-ago reported figure. Arista has a long-term earnings growth expectation of 14.8%. Arista delivered an average earnings surprise of 11.8% in the last four reported quarters. Akamai Technologies, Inc. AKAM is slated to release second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at $1.55 per share, indicating a 1.9% decline from the year-ago reported figure. Akamai has a long-term earnings growth expectation of 8%. Akamai delivered an average earnings surprise of 4.8% in the last four reported quarters. Pinterest, Inc. PINS is set to release second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at 34 cents per share, implying a growth of 17.2% from the year-ago reported figure. Pinterest has a long-term earnings growth expectation of 33.3%. Pinterest delivered an average earnings surprise of 0.5% in the last four reported quarters. One Big Gain, Every Trading Day To help you take full advantage of this market, you're invited to access every stock recommendation in all our private portfolios - for just $1. Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That's about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%. Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Verizon Communications Inc. (VZ): Free Stock Analysis Report Akamai Technologies, Inc. (AKAM): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Pinterest, Inc. (PINS): Free Stock Analysis Report

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