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NRG Energy (NRG) Q2 Earnings Miss Estimates, Revenues Up Y/Y

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NRG Energy, Inc. (NRG - Free Report) posted second-quarter 2021 adjusted earnings of $1.20 per share, lagging the Zacks Consensus Estimate of $2.41 by 50.2%. The bottom line also compared unfavorably with $1.27 per share reported in the year-ago quarter.

Revenues

NRG Energy’s quarterly revenues came in at $5,243 million, up 134.3% year over year.

NRG Energy, Inc. Price, Consensus and EPS Surprise

NRG Energy, Inc. Price, Consensus and EPS Surprise

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

Highlights of the Release

The company expects Winter Storm Uri's total 2021 loss before income tax to be $1,060 million driven by resettlement data. NRG Energy plans to mitigate the loss by $360-$560 million, which includes — but is not limited to — customer bad debt mitigation, counterparty default recovery, ERCOT default and uplift regulatory securitization along with one-time cost savings.

Second-quarter adjusted EBITDA was $656 million, up 14.3% from $574 million in the year-ago quarter.

The company’s total operating costs and expenses for second-quarter 2021 amounted to $3,686 million, up 110.1% from $1,754 million in second-quarter 2020.

Interest expenses of $125 million increased 30.2% from the prior-year quarter’s $96 million.

Financial Highlights

As of Jun 30, 2021, NRG Energy had cash and cash equivalents worth $361 million compared with $3,905 million on Dec 31, 2020.

As of Jun 30, 2021, its long-term debt amounted to $8,712 million compared with $8,691 million on Dec 31, 2020.

 Cash provided by continuing operations for first-half 2021 was $377 million compared with $692 million generated in the comparable period of 2020.

Capital expenditures for first-half 2021 were $143 million compared with $116 million in first-half 2020.

Guidance

NRG Energy maintained 2021 adjusted EBITDA view in the range of $2,400-$2,600 million. It expects 2021 free cash flow before growth investments in the band of $1,440-$1,640 million.

Zacks Rank

NRG Energy has a Zacks Rank #4 (Sell), at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

WEC Energy Group (WEC - Free Report) recorded second-quarter 2021 earnings per share of 87 cents, which beat the Zacks Consensus Estimate of 79 cents by 10.1%.

FirstEnergy Corporation (FE - Free Report) came up with second-quarter 2021 operating earnings of 59 cents per share, in line with the Zacks Consensus Estimate.

DTE Energy Company (DTE - Free Report) reported second-quarter 2021 operating earnings per share of $1.70, which beat the Zacks Consensus Estimate of $1.44 by 18.1%.

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