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Clearway Energy (CWEN) Q4 Earnings Surpass Estimates, Sales Lag

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Clearway Energy Inc. (CWEN - Free Report) recorded fourth-quarter 2023 earnings of 32 cents per share, which surpassed the Zacks Consensus Estimate of 16 cents by 100%. The bottom line also improved 220% from the year-ago quarter’s level of 10 cents.

Full-year 2023 earnings were 67 cents per share, down 86.6% from the previous year’s level of $4.99.

Revenues

Total revenues of $249 million missed the Zacks Consensus Estimate of $284 million by 12.2%. The top line also declined 7.1% from the year-ago quarter’s figure of $268 million.

Full-year 2023 revenues totaled $1.31 billion, up 10.1% from the previous year’s $1.19 billion.

 

Clearway Energy, Inc. Price, Consensus and EPS Surprise Clearway Energy, Inc. Price, Consensus and EPS Surprise

Clearway Energy, Inc. price-consensus-eps-surprise-chart | Clearway Energy, Inc. Quote

Highlights of the Release

Adjusted EBITDA for the quarter totaled $201 million compared with $212 million in the year-ago period.

The company signed contracts in the last twelve months, ensuring that 42% of the Resource Adequacy for Marsh Landing, Walnut Creek and El Segundo is contracted in 2027, with nearly 100% contracted through 2026.

Total operating costs and expenses for the full year amounted to $1.05 billion, up 3.9% from the previous year’s figure of $1.01 billion. This was due to an increase in the cost of operations.

Operating income for the full year came in at $263 million compared with the previous year’s $1.47 billion.

CWEN incurred interest expenses of $337 million compared with $232 million in the previous year.

Financial Position

Clearway Energy had cash and cash equivalents of $535 million as of Dec 31, 2023, down from $657 million as of Dec 31, 2022.

Total liquidity as of Dec 31, 2023, was $1.5 billion, up 9.5% from $1.37 billion recorded as of Dec 31, 2022.

Long-term debt as of Dec 31, 2023, amounted to $7.48 billion compared with $6.49 million as of Dec 31, 2022.

Net cash provided by operating activities in 2023 totaled $702 million compared with $787 million in 2022.

The first-quarter 2024 quarterly dividend increased 1.7% to 40.33 cents per share. The company expects annual dividend per share growth in the upper range of 5-8% through 2026.

Guidance

The company expects 2024 net income and Adjusted EBITDA to be $90 million and $1.17 billion, respectively.

Cash from Operating Activities is expected to be $830 million for the same period.

Clearway Energy reaffirmed its 2024 cash available for distribution (CAFD) guidance of $395 million.

Zacks Rank

CWEN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Recent Releases

NextEra Energy Partners, LP (NEP - Free Report) recorded fourth-quarter 2023 operating loss of 35 cents per unit, which missed the Zacks Consensus Estimate of earnings of 3 cents per unit.

The consensus estimate for 2024 EPS is pegged at 61 cents, implying a year-over-year increase of 79.4%. NEP has a long-term earnings growth rate of 14.72%.  

CNX Resources Corporation (CNX - Free Report) reported fourth-quarter 2023 operating earnings of 68 cents per share, which beat the Zacks Consensus Estimate of 27 cents by 151.9%.

The consensus estimate for 2024 EPS is pinned at $1.52, implying a year-over-year decrease of 20%. CNX has a long-term earnings growth rate of 5.56%.  

Arch Resources Inc. (ARCH - Free Report) reported fourth-quarter 2023 operating EPS of $6.07, which missed the Zacks Consensus Estimate of $6.90 by 12%.

The consensus estimate for 2024 earnings is pegged at $23.25, implying a year-over-year decrease of 3.9%. The consensus mark for 2024 sales is pinned at $2.89 billion.

 

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