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NRG Energy (NRG) Up 13.4% Since Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for NRG Energy, Inc. (NRG - Free Report) . Shares have added about 13.4% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is NRG due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
NRG Energy Q4 Sales Beat Estimates, 2017 Loss Widens
NRG Energy, Inc. reported earnings of 51 cents per share in the fourth quarter of 2017 against the Zacks Consensus Estimate of a loss of 8 cents.
Revenues
NRG Energy posted revenues of $2,458 million in the quarter, beating the Zacks Consensus Estimate of $2,234 million by 10%.
Highlights of the Release
Operation & Maintenance and Other cost of operations in the fourth quarter was $449 million, down 7.2% from $484 the year-ago quarter.
Adjusted EBITDA in the fourth quarter was $497 million compared with $471 million in the year-ago period.
Thanks to Transformation Plan, at the end of fourth-quarter 2017, the company reduced costs by $150 million or 231% of its 2017 cost savings target.
To date, the company has announced or closed asset sales of nearly $3 billion, which is close to its Transformation Plan target of $3.2 billion.
Financial Highlights
As of Dec 31, 2017 NRG Energy had cash and cash equivalents of $991 million compared with $938 million as of Dec 31, 2016.
As of Dec 31, 2017 the company’s long-term debt and capital leases (excluding current portion) were $15,716 million compared with $15,957 million as of Dec 31, 2016.
The company’s net cash provided in operating activities in the 2017 was $1,387 million compared with $2,088 million in the prior-year period.
Capital expenditure in 2017 was $1,111 million, up 13.8% from $976 million in 2016.
The NRG board of directors has authorized $1 billion for share repurchases, with the first $500 million program to begin immediately. The remaining buyback of $500 million will be completed once the company completes its announced asset sales.
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 a range of $1,550-$1,750 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimate flatlined during the past month. There has been one revision higher for the current quarter compared to one lower. In the past month, the consensus estimate has shifted by 43.8% due to these changes.
At this time, NRG has an average Growth Score of C, however its Momentum is doing a lot better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is equally suitable for value and momentum investors while growth investors may want to look elsewhere.
Outlook
NRG has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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NRG Energy (NRG) Up 13.4% Since Earnings Report: Can It Continue?
It has been about a month since the last earnings report for NRG Energy, Inc. (NRG - Free Report) . Shares have added about 13.4% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is NRG due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
NRG Energy Q4 Sales Beat Estimates, 2017 Loss Widens
NRG Energy, Inc. reported earnings of 51 cents per share in the fourth quarter of 2017 against the Zacks Consensus Estimate of a loss of 8 cents.
Revenues
NRG Energy posted revenues of $2,458 million in the quarter, beating the Zacks Consensus Estimate of $2,234 million by 10%.
Highlights of the Release
Operation & Maintenance and Other cost of operations in the fourth quarter was $449 million, down 7.2% from $484 the year-ago quarter.
Adjusted EBITDA in the fourth quarter was $497 million compared with $471 million in the year-ago period.
Thanks to Transformation Plan, at the end of fourth-quarter 2017, the company reduced costs by $150 million or 231% of its 2017 cost savings target.
To date, the company has announced or closed asset sales of nearly $3 billion, which is close to its Transformation Plan target of $3.2 billion.
Financial Highlights
As of Dec 31, 2017 NRG Energy had cash and cash equivalents of $991 million compared with $938 million as of Dec 31, 2016.
As of Dec 31, 2017 the company’s long-term debt and capital leases (excluding current portion) were $15,716 million compared with $15,957 million as of Dec 31, 2016.
The company’s net cash provided in operating activities in the 2017 was $1,387 million compared with $2,088 million in the prior-year period.
Capital expenditure in 2017 was $1,111 million, up 13.8% from $976 million in 2016.
The NRG board of directors has authorized $1 billion for share repurchases, with the first $500 million program to begin immediately. The remaining buyback of $500 million will be completed once the company completes its announced asset sales.
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 a range of $1,550-$1,750 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimate flatlined during the past month. There has been one revision higher for the current quarter compared to one lower. In the past month, the consensus estimate has shifted by 43.8% due to these changes.
NRG Energy, Inc. Price and Consensus
NRG Energy, Inc. Price and Consensus | NRG Energy, Inc. Quote
VGM Scores
At this time, NRG has an average Growth Score of C, however its Momentum is doing a lot better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is equally suitable for value and momentum investors while growth investors may want to look elsewhere.
Outlook
NRG has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.