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NRG Energy's (NRG) Q4 Earnings Beat Estimates, Revenues Miss

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NRG Energy, Inc. (NRG - Free Report) reported fourth-quarter 2022 earnings of $1.64 per share, which surpassed the Zacks Consensus Estimate of $1.43 by 14.7%. The bottom line improved 269.1% from the year-ago quarter’s adjusting loss of 97 cents per share.

In 2022, NRG reported earnings of $5.17 per share, down 32.6% from $7.67 in 2021.

Revenues

NRG Energy’s fourth-quarter 2022 revenues came in at $7,855 million, up 11.5% year over year. Total revenues missed the Zacks Consensus Estimate of $8,673 million by 9.4%.

Total revenues for 2022 were $31.5 billion, compared with $26.9 billion in 2021.

 

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

Fourth-quarter adjusted EBITDA was $435 million, up 0.5% from $433 million in the year-ago quarter.

The company’s total operating costs and expenses in 2022 amounted to $29,577 million, up 23.8% from $23,895 million in 2021.

NRG repurchased shares worth 606 million at an average price of $40.5 per share, for a total amount of capital returned to shareholders of $938 million in 2022.

NRG announced the agreement under which the company will acquire Vivint, a smart home platform company, in an all-cash transaction. The company expects to achieve $100 million in cost synergies and $300 million in revenue synergies/growth through cross-selling, channel optimization, and continued base business growth by 2025.

Financial Highlights

As of Dec 31, 2022, NRG Energy had cash and cash equivalents worth $430 million compared with $250 million on Dec 31, 2021.

As of Dec 31, 2022, NRG’s long-term debt and finance leases amounted to $7,976 million compared with $7,966 million on Dec 31, 2021.

Cash provided by operating activities for 2022 was $360 million compared with $493 million in the year-ago period.

Capital expenditures for 2022 were $367 million compared with $269 million in the year-ago period.

Guidance

NRG Energy reaffirms its 2023 adjusted EBITDA in the range of $2,270-$2,470 million. Cash provided by operating activities was in the range of $1,780-$1,980 million.

NRG’s 2023 free cash flow before growth investments was in the band of $1,520-$1,720 million.

Zacks Rank

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

Upcoming Releases

SJW Group (SJW - Free Report) is slated to report fourth-quarter results on Feb 22, after market close. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.03 per share, implying a year-over-year increase of 145.24%.

The Zacks Consensus Estimate for 2023 EPS is $2.48, implying a year-over-year increase of 5.3%. SJW delivered an average earnings surprise of 0.97% in the last four quarters.

ONE Gas (OGS - Free Report) is scheduled to report fourth-quarter results on Feb 22, after market close. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.2 per share, indicating a year-over-year increase of 7.14%.

OGS’s long-term (three to five years) earnings growth is currently pegged at 5%. The Zacks Consensus Estimate for 2023 EPS is $4.12, implying a year-over-year increase of 1.54%.

Primo Water Corporation (PRMW - Free Report) is slated to report fourth-quarter results on Feb 23, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 17 cents per share, implying a year-over-year increase of 54.6%.

The Zacks Consensus Estimate for 2023 EPS is 82 cents, implying a year-over-year increase of 19.5%. PRMW delivered an average earnings surprise of 7.98% in the last four quarters.
 


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