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NRG Energy (NRG) Beats Q2 Earnings Estimates, Revenues Lag

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NRG Energy, Inc. (NRG - Free Report) reported earnings of 36 cents in the second quarter of 2017, surpassing the Zacks Consensus Estimate of a loss of 5 cents.

Revenues

NRG Energy's quarterly operating revenues of $2,701 million lagged the Zacks Consensus Estimate of $3,032 million by 10.9%. However, revenues were up 20.2% from $2,248 million reported in the second quarter of 2016.

NRG Energy, Inc. Price, Consensus and EPS Surprise

NRG Energy, Inc. Price, Consensus and EPS Surprise | NRG Energy, Inc. Quote

Highlights of the Release

Total operating costs and expenses in the quarter increased 17.2% to $2,402 million from $2,050 million a year ago.

The company’s adjusted EBITDA was $685 million in the second quarter of 2017, down 1.9% from $698 million a year ago.

The company incurred interest expenses of $247 million in the quarter, up 5.3% from $237 million in the year-ago quarter.

Highlights of the Release

As of Jun 30, NRG Energy had cash and cash equivalents of $752 million compared with $938 million as of Dec 31, 2016.

The company’s long-term debt and capital leases (excluding current portion) were $15,842 million compared with $15,957 million as of Dec 31, 2016.

The company’s net cash provided in operating activities in the first half of 2017 was $74 million against $811 million in the prior-year period.

Capital expenditure in second-quarter 2017 was $542 million, up 22.6% from $442 million in the year-ago period.

Guidance

NRG reaffirmed its 2017 adjusted EBITDA guidance in the range of $2,565–$2,765 million and free cash flow before growth investments of 1,290–$1,490 million.

Zacks Rank

NRG Energy has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2017 adjusted earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.76 by 5.7%. Reported earnings were also up 11.4% year over year.

Eversource Energy (ES - Free Report) reported second-quarter 2017 operating earnings of 72 cents per share, beating the Zacks Consensus Estimate of 68 cents by 5.8%. The quarterly earnings were up 12.5% from the year-ago quarter figure of 64 cents.

First Energy Corp. (FE - Free Report) reported second-quarter 2017 operating earnings of 61 cents per share, in line with the Zacks Consensus Estimate. Quarterly earnings were up 8.9% year over year.

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