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NRG Energy (NRG) Q2 Loss Narrows Y/Y, 2016 Outlook Intact
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NRG Energy, Inc. (NRG - Free Report) reported adjusted loss of 4 cents in the second quarter of 2016, narrower than a loss of 6 cents in the year-ago quarter. The Zacks Consensus Estimate was earnings of 3 cents.
Accounting for all one-time charges for the quarter, the company reported a loss of 61 cents.
NRG Energy's operating revenues of $2,638 million in the second quarter of 2016 lagged the Zacks Consensus Estimate of $3,453 million by 23.6% and tumbled 22.4% from $3,400 million in the second quarter of 2015.
Highlights of the Release
Total operating costs and expenses in the quarter tanked 22% to $2,468 million from $3,168 million a year ago, primarily due to lower cost of operations, lower depreciation and amortization and lower development activity expenses.
The company’s operating income was $87 million in the second quarter of 2016, down 62.5% from $232 million a year ago.
The company incurred interest expenses of $277 million in the quarter, up 5.3% from $263 million a year ago.
As of Jun 30, 2016, NRG Energy had cash and cash equivalents of $1,389 million, compared with $1,518 million as of Dec 31, 2015.
The company’s long-term debt and capital leases (excluding current portion) were $17,893 million as of Jun 30, 2016, compared with $18,983 million as of Dec 31, 2015.
In the first six months of 2016, NRG Energy’s net cash from operating activities was $873 million, up 90.6% from $458 million in the prior-year period.
Capital expenditure in the first six months of 2016 was $622 million, up 6.7% from $583 million in first-quarter 2015.
Guidance
For 2016, NRG Energy reiterated its adjusted EBITDA and free cash flow (before growth investments) guidance in the range of $3,000–$3,200 million and $1,000–$1,200 million, respectively.
Peer Releases
NiSource Inc. (NI - Free Report) reported second-quarter 2016 operating earnings of 8 cents per share, surpassing the Zacks Consensus Estimate of 7 cents by 14.3%.
FirstEnergy Corporation (FE - Free Report) announced second-quarter 2016 operating earnings of 56 cents per share, beating the Zacks Consensus Estimate of 53 cents by 5.7%.
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2016 adjusted earnings of $1.67 per share, outpacing the Zacks Consensus Estimate of $1.58 by 5.7%.
Zacks Rank
NRG Energy currently has a Zacks Rank #3 (Hold).
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NRG Energy (NRG) Q2 Loss Narrows Y/Y, 2016 Outlook Intact
NRG Energy, Inc. (NRG - Free Report) reported adjusted loss of 4 cents in the second quarter of 2016, narrower than a loss of 6 cents in the year-ago quarter. The Zacks Consensus Estimate was earnings of 3 cents.
Accounting for all one-time charges for the quarter, the company reported a loss of 61 cents.
Revenues
NRG Energy's operating revenues of $2,638 million in the second quarter of 2016 lagged the Zacks Consensus Estimate of $3,453 million by 23.6% and tumbled 22.4% from $3,400 million in the second quarter of 2015.
Highlights of the Release
Total operating costs and expenses in the quarter tanked 22% to $2,468 million from $3,168 million a year ago, primarily due to lower cost of operations, lower depreciation and amortization and lower development activity expenses.
The company’s operating income was $87 million in the second quarter of 2016, down 62.5% from $232 million a year ago.
The company incurred interest expenses of $277 million in the quarter, up 5.3% from $263 million a year ago.
NRG ENERGY INC Price, Consensus and EPS Surprise
NRG ENERGY INC Price, Consensus and EPS Surprise | NRG ENERGY INC Quote
Financial Condition
As of Jun 30, 2016, NRG Energy had cash and cash equivalents of $1,389 million, compared with $1,518 million as of Dec 31, 2015.
The company’s long-term debt and capital leases (excluding current portion) were $17,893 million as of Jun 30, 2016, compared with $18,983 million as of Dec 31, 2015.
In the first six months of 2016, NRG Energy’s net cash from operating activities was $873 million, up 90.6% from $458 million in the prior-year period.
Capital expenditure in the first six months of 2016 was $622 million, up 6.7% from $583 million in first-quarter 2015.
Guidance
For 2016, NRG Energy reiterated its adjusted EBITDA and free cash flow (before growth investments) guidance in the range of $3,000–$3,200 million and $1,000–$1,200 million, respectively.
Peer Releases
NiSource Inc. (NI - Free Report) reported second-quarter 2016 operating earnings of 8 cents per share, surpassing the Zacks Consensus Estimate of 7 cents by 14.3%.
FirstEnergy Corporation (FE - Free Report) announced second-quarter 2016 operating earnings of 56 cents per share, beating the Zacks Consensus Estimate of 53 cents by 5.7%.
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2016 adjusted earnings of $1.67 per share, outpacing the Zacks Consensus Estimate of $1.58 by 5.7%.
Zacks Rank
NRG Energy currently has a Zacks Rank #3 (Hold).
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 >>