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Why Is NRG Yield (CWEN) Up 1.4% Since Last Earnings Report?

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A month has gone by since the last earnings report for NRG Yield (CWEN - Free Report) . Shares have added about 1.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is NRG Yield 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.

Clearway Energy Incurs Loss in Q1, Beats on Revenues

Clearway Energy Inc.  reported first-quarter 2019 loss of 18 cents per share against earnings of 16 cents in the year-ago period. The reported loss also fared unfavorably with the Zacks Consensus Estimate of earnings of 2 cents per share.

Total Revenues

The company's total revenues in first-quarter 2019 were $217 million, surpassing the Zacks Consensus Estimate of $212 million by 2.4%. However, the top line was down 3.5% from the year-ago reported figure.

Highlights of the Release

Interest expenses in the first quarter amounted to $101 million, increasing 83.6% from a year ago.

Operating income in the reported quarter was $41 million, down 16.3% from the year-ago level.

Financial Position

Clearway Energy had cash and cash equivalents of $117 million as of Mar 31, 2019, down from $407 million on Dec 31, 2018.

Long-term debt as of Mar 31, 2019 was $4,225 million, reflecting a decline from $5,447 million on Dec 31, 2018.

The company's net cash flow from operating activities during first-quarter 2019 was $61 million compared with $65 million in the prior-year period.

Guidance

Clearway Energy expects 2019 adjusted EBITDA to be $995 million and cash available for distribution to be $270 million. Net income in 2019 is expected to be $165 million.

 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -16.22% due to these changes.

VGM Scores

Currently, NRG Yield has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, NRG Yield has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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