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NRG Energy (NRG) Q3 Earnings Lag Estimates, Revenues Rise Y/Y
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NRG Energy, Inc. (NRG - Free Report) delivered earnings of $1.88 per share from continuing operations in third-quarter 2019, which missed the Zacks Consensus Estimate of $2.14 by 12.1%. However, the bottom line improved 100% from the year-ago quarter.
Revenues
NRG Energy’s revenues of $2,996 million in the quarter inched up 1.2% from the year-ago quarter’s figure.
Highlights of the Release
Third-quarter adjusted EBITDA was $792 million compared with $651 million in the year-ago quarter.
As part of the Transformation Plan, the company realized $401 million in the third quarter of its 2019 cost-savings target.
Through Nov 7, 2019, the company completed share repurchases of $1.305 billion at an average price of $38.75 per share. The company has nearly $195 million remaining share repurchases under the latest $250-million share repurchase program announced in the second quarter. In total the company has allocated $1.5 billion of capital available for allocation to share repurchases in 2019.
On Sep 27, 2019, NRG Energy contributed $95 million to Petra Nova to prepay a significant portion of the project debt and fund operations.
NRG Energy, Inc. Price, Consensus and EPS Surprise
As of Sep 30, 2019, the company had cash and cash equivalents of $243 million compared with $563 million as of Dec 31, 2018.
As of Sep 30, the company’s long-term debt and capital leases amounted to $5,798 million compared with $6,449 million as of Dec 31, 2018.
The company’s net cash from operating activities ( includes continuing operation ) in the first nine months of 2019 was $853 million compared with $671 million generated in the year-ago period.
Capital expenditure in the first nine months of 2019 was $183 million compared with $343 million in the year-ago period.
Guidance
The company narrowed 2019 adjusted EBITDA guidance in the range of $1,900-$2,000 million compared with the previous expectation of $1,850-$2,050 million. It also provided 2020 EBITDA guidance of $1,900-$2,100 million. NRG Energy expects free cash flow before growth investments in the band of $1,250-$1,350 million compared with previous expectation of $1,250-$1,450 million. Free cash flow for 2020 is projected in the range of $1,275-$1,475 million.
Beginning in the first quarter of 2020, the company will increase annual dividend to $1.20 per share. It expects to target an annual dividend growth rate of 7-9%.
NextEra Energy, Inc (NEE - Free Report) reported third-quarter 2019 adjusted earnings of $2.39 per share, beating the Zacks Consensus Estimate of $2.27 by 5.3%.
Xcel Energy Inc (XEL - Free Report) posted third-quarter 2019 operating earnings of $1.01 per share, which lagged the Zacks Consensus Estimate of $1.05 by 3.8%.
American Electric Power Co., Inc (AEP - Free Report) reported third-quarter 2019 adjusted earnings of $1.46 per share, which surpassed the Zacks Consensus Estimate of $1.30 by 12.3%.
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NRG Energy (NRG) Q3 Earnings Lag Estimates, Revenues Rise Y/Y
NRG Energy, Inc. (NRG - Free Report) delivered earnings of $1.88 per share from continuing operations in third-quarter 2019, which missed the Zacks Consensus Estimate of $2.14 by 12.1%. However, the bottom line improved 100% from the year-ago quarter.
Revenues
NRG Energy’s revenues of $2,996 million in the quarter inched up 1.2% from the year-ago quarter’s figure.
Highlights of the Release
Third-quarter adjusted EBITDA was $792 million compared with $651 million in the year-ago quarter.
As part of the Transformation Plan, the company realized $401 million in the third quarter of its 2019 cost-savings target.
Through Nov 7, 2019, the company completed share repurchases of $1.305 billion at an average price of $38.75 per share. The company has nearly $195 million remaining share repurchases under the latest $250-million share repurchase program announced in the second quarter. In total the company has allocated $1.5 billion of capital available for allocation to share repurchases in 2019.
On Sep 27, 2019, NRG Energy contributed $95 million to Petra Nova to prepay a significant portion of the project debt and fund operations.
NRG Energy, Inc. Price, Consensus and EPS Surprise
NRG Energy, Inc. price-consensus-eps-surprise-chart | NRG Energy, Inc. Quote
Financial Highlights
As of Sep 30, 2019, the company had cash and cash equivalents of $243 million compared with $563 million as of Dec 31, 2018.
As of Sep 30, the company’s long-term debt and capital leases amounted to $5,798 million compared with $6,449 million as of Dec 31, 2018.
The company’s net cash from operating activities ( includes continuing operation ) in the first nine months of 2019 was $853 million compared with $671 million generated in the year-ago period.
Capital expenditure in the first nine months of 2019 was $183 million compared with $343 million in the year-ago period.
Guidance
The company narrowed 2019 adjusted EBITDA guidance in the range of $1,900-$2,000 million compared with the previous expectation of $1,850-$2,050 million. It also provided 2020 EBITDA guidance of $1,900-$2,100 million. NRG Energy expects free cash flow before growth investments in the band of $1,250-$1,350 million compared with previous expectation of $1,250-$1,450 million. Free cash flow for 2020 is projected in the range of $1,275-$1,475 million.
Beginning in the first quarter of 2020, the company will increase annual dividend to $1.20 per share. It expects to target an annual dividend growth rate of 7-9%.
Zacks Rank
NRG Energy has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
NextEra Energy, Inc (NEE - Free Report) reported third-quarter 2019 adjusted earnings of $2.39 per share, beating the Zacks Consensus Estimate of $2.27 by 5.3%.
Xcel Energy Inc (XEL - Free Report) posted third-quarter 2019 operating earnings of $1.01 per share, which lagged the Zacks Consensus Estimate of $1.05 by 3.8%.
American Electric Power Co., Inc (AEP - Free Report) reported third-quarter 2019 adjusted earnings of $1.46 per share, which surpassed the Zacks Consensus Estimate of $1.30 by 12.3%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>