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NRG Energy's (NRG) Q2 Earnings Miss, Sales Beat Estimates

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NRG Energy, Inc. (NRG - Free Report) reported earnings of 31 cents per share in second-quarter 2018, missing the Zacks Consensus Estimate of 86 cents by 64%.

Revenues

NRG Energy posted revenues of $2,922 million in the quarter, beating the Zacks Consensus Estimate of $2,411 million by 21.2%. Quarterly revenues improved 8.2% year over year.

Highlights of the Release

Total operating costs and expenses in the second quarter was $2,602 million, up 11.4% from the year-ago quarter’s tally.

Adjusted EBITDA in the second quarter was $843 million compared with $686 million in the year-ago quarter.

Through the second quarter of 2018, the company realized $225 million of cost savings target in 2018, which is part of the Transformation Plan.

In the first half of 2018, NRG Energy completed $500 million of $1-billion share buyback program, which was announced earlier in 2018.

NRG Energy, Inc. Price, Consensus and EPS Surprise

 

Financial Highlights

As of Jun 30, 2018, NRG Energy had cash and cash equivalents of $980 million compared with $991 million as of Dec 31, 2017.

As of Jun 30, 2018, the company’s long-term debt and capital leases (excluding current portion) were $14,821 million compared with $15,716 million as of Dec 31, 2017.

The company’s net cash provided/ (used) in operating activities at the end of first-half 2018 was $524 million compared with $74 million at the end of first-half 2017.

Capital expenditure at the end of Jun 30, 2018 was $691 million compared with $542 million at the end of Jun 30, 2017.

Guidance

NRG Energy reaffirmed 2018 adjusted EBITDA guidance in the range of $2,800-$3,000 million and free cash flow before growth investments in the range of $1,550-$1,750 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

DTE Energy (DTE - Free Report) reported second-quarter 2018 operating earnings per share (EPS) of $1.36, which outpaced the Zacks Consensus Estimate of $1.11 by 22.5%.

American Electric Power (AEP - Free Report) reported second-quarter 2018 adjusted EPS of $1.01, beating the Zacks Consensus Estimate of 88 cents by 14.8%.

NextEra Energy (NEE - Free Report) reported second-quarter 2018 adjusted earnings of $2.11, beating the Zacks Consensus Estimate of $2.07 by 1.93%

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