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Why Is NRG Yield (CWEN) Up 5.5% Since Last Earnings Report?

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It has been about a month since the last earnings report for NRG Yield (CWEN - Free Report) . Shares have added about 5.5% 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 catalysts.

Clearway Energy Incurs Loss in Q2, Lowers 2019 View

Clearway Energy Inc.  reported second-quarter 2019 loss of 22 cents per share against earnings of 61 cents in the year-ago period. The reported loss also fared unfavorably with the Zacks Consensus Estimate of earnings per share of 40 cents.

Total Revenues

The company's total revenues in second-quarter 2019 were $284 million, surpassing the Zacks Consensus Estimate of $279 million by 1.8%. However, the top line was down 7.5% from the year-ago reported figure.

Highlights of the Release

During the reported quarter, Clearway Energy experienced weak renewable energy conditions across the portfolio, which largely affected its performance.

Total operating expenses in the second quarter amounted to $197 million, increasing 20.8% from a year ago.

Operating income in the reported quarter was $87 million, down 39.6% from the year-ago level.

Interest expenses amounted to $130 million, increasing 83.1% from a year ago.

Financial Position

Clearway Energy had cash and cash equivalents of $93 million as of Jun 30, 2019, down from $407 million on Dec 31, 2018.

Long-term debt as of Jun 30, 2019 was $4,192 million, reflecting a decline of 23% from $5,447 million on Dec 31, 2018.

The company's net cash flow from operating activities during the first half of 2019 was $150 million compared with $181 million in the comparable prior-year period.

Guidance

Clearway Energy reduced its full-year 2019 cash available for distribution (CAFD) guidance to $250 million from $270 million to account for the previously disclosed impact of the CVSR facility outage in June and year to date renewable resource performance.
 

How Have Estimates Been Moving Since Then?

Fresh estimates followed a flat path over the past two months. The consensus estimate has shifted -25.93% due to these changes.

VGM Scores

Currently, NRG Yield has a poor Growth Score of F, a grade with the same score on the momentum front. 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

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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