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Clearway Energy (CWEN) Q2 Earnings Top Estimates, Revenues Miss

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Clearway Energy Inc. (CWEN - Free Report) recorded second-quarter 2022 operating earnings per share (EPS) of $4.89 per share, which surpassed the Zacks Consensus Estimate of 38 cents by 1,186.8%. The bottom line also improved by 1,530% from the year-ago figure’s tally of 30 cents.

Revenues

Operating revenues of $368 million missed the Zacks Consensus Estimate of $389 million by 5.4%. The top line also decreased by 3.2% from $380 million in the prior-year quarter.

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

Total operating expenses amounted to $253 million, up 2.4% from the year-ago figure of $247 million due to an increase in operational costs.

Operating income was $1,406 million, up 957.1% from the year-ago figure of $133 million.

In the second quarter, CWEN reported interest expenses of $47 million, down 54.4% year over year.

On May 1, 2022, Clearway Energy completed the sale of 100% of its interests in the Thermal Business to KKR for net proceeds of nearly $1.46 billion. The Thermal disposition resulted in a gain of $1.29 billion. The proceeds from the sale were utilized to repay temporary cash borrowings. On Jun 23, 2022, CWEN entered into a binding agreement to acquire the 413-megawatt portfolio of operating wind projects from Capistrano Wind Partners.

Financial Position

Clearway Energy had cash and cash equivalents of $955 million as of Jun 30, 2022, up from $179 million as of Dec 31, 2021.

Total liquidity as of Jun 30, 2022 was $1,696 million, up 106.6% from the Dec 31, 2021 level of $821 million.

The long-term debt as of Jun 30, 2022 was $6,605 million compared with $6,939 million as of Dec 31, 2021.

Clearway Energy’s net cash provided by operating activities for the first six months of 2022 was $279 million compared with $241 million in the year-ago period.

Guidance

Clearway Energy reaffirmed its 2022 cash available for the distribution (“CAFD”) guidance of $365 million due to closing the sale of Clearway's Thermal Business. CWEN is also increasing its pro forma CAFD outlook expectations to nearly $400 million from $385 million. The company expects its 2022 EBITDA guidance of $1,225 million.

Zacks Rank

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

Upcoming Releases

PNM Resources (PNM - Free Report) is slated to report second-quarter 2022 earnings on Aug 4 before market open. The Zacks Consensus Estimate for the second-quarter EPS is pegged at 55 cents. PNM Resources’ long-term earnings growth is currently pegged at 5%.

Alliant Energy Corp. (LNT - Free Report) is slated to report second-quarter 2022 earnings on Aug 4 after market close. The Zacks Consensus Estimate for the second-quarter EPS is pegged at 58 cents. Alliant Energy’s long-term earnings growth is currently pegged at 5.7%.

Hawaiian Electric Industries (HE - Free Report) is scheduled to announce first-quarter 2022 results on Aug 8 after market close. The Zacks Consensus Estimate for earnings is pegged at 52 cents per share. Hawaiian Electric Industries’ long-term earnings growth is projected at 3.2%.