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NRG Energy (NRG) Lags Q3 Earnings Estimates, Tops Revenues

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NRG Energy, Inc. (NRG - Free Report) reported earnings of 94 cents per share in third-quarter 2018, missing the Zacks Consensus Estimate of $1.12 per share by 16%. Earnings improved 56.7% year over year on better performance by the integrated retail and generation platform.

Revenues

NRG Energy posted revenues of $3,061 million in the quarter, beating the Zacks Consensus Estimate of $2,960 million by 3.4%. Quarterly revenues improved 11.7% year over year.

NRG Energy, Inc. Price, Consensus and EPS Surprise

NRG Energy, Inc. Price, Consensus and EPS Surprise | NRG Energy, Inc. Quote

Highlights of the Release

Total operating costs and expenses in the third quarter was $2,659 million, up 8.8% from the year-ago quarter’s tally.

Adjusted EBITDA in the third quarter was $677 million compared with $552 million a year ago.

Through the third quarter of 2018, the company realized $ 375 million of cost savings target in 2018 under the Transformation Plan.

Financial Highlights

As of Sep 30, 2018, NRG Energy had cash and cash equivalents of $1,359 million compared with $767 million as of Dec 31, 2017.

As of Sep 30, 2018, the company’s long-term debt and capital leases were $6,658 million compared with $9,180 million as of Dec 31, 2017.

The company’s net cash provided operating activities at the end of the first nine months of 2018 was $1,082 million compared with $736 million at the end of the first nine months of  2017.

Capital expenditure at the end of Sep 30, 2018, was $345 million compared with $172 million at the end of Sep 30, 2017.

Guidance

NRG Energy narrowed the 2018 adjusted EBITDA guidance to a range of $1,700-$1,800 million from $2,800-$3,000 million and free cash flow before growth investments to the range of $1,240-$1,340 million from $1,550-$1,750 million. The narrowed guidance reflects the completion of sale of the NRG Yield and the Renewables Platform, as well as the previously announced divestment of the South Central business unit.

The company initiated 2019 adjusted EBITDA guidance in the range of $1,850-$2,050 million and free cash flow before growth investments in the range of $1,405-$1,605 million.

Zacks Rank

NRG Energy has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Utility Releases

NextEra Energy (NEE - Free Report) reported third-quarter 2018 adjusted earnings of $2.18 per share, beating the Zacks Consensus Estimate of $2.17 by 0.46%.

DTE Energy Company (DTE - Free Report)     posted third-quarter 2018 operating earnings per share of $2.13, which outpaced the Zacks Consensus Estimate of $1.74 by 22.4%.

FirstEnergy Corporation (FE - Free Report) reported third-quarter 2018 operating earnings of 80 cents per share, beating the Zacks Consensus Estimate of 73 cents by 9.59%.

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