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Clearway Energy (CWEN) Lags Q4 Earnings Estimates, Ups View

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Clearway Energy Inc. CWEN reported fourth-quarter 2019 loss of 6 cents per share against the Zacks Consensus Estimate of earnings of 39 cents.
Total Revenues

The company's total revenues in 2019 were $1,032 million, declining 2% from the year-ago reported figure.

Highlights of the Release

On Dec 6, 2019, it closed the acquisition of the 527-MW Carlsbad Energy Center (Carlsbad) from Global Infrastructure Partners III (GIP) for a purchase price of $184 million plus the assumption of non-recourse debt of $803 million. This acquisition is expected to contribute asset CAFD on a five-year average annual basis of nearly $27 million beginning Jan 1, 2020.

During the quarter, the company raised $700 million of new corporate level capital to support growth investments and optimize the balance sheet.

Total operating expenses in 2019 amounted to $808 million, increasing 14.5% from the year-ago period.

Operating income in 2019 was $224 million, down 35.4% from the year-ago level.

Interest expenses in the full year amounted to $404 million, increasing 32% from the year-ago period.

Clearway Energy, Inc. Price, Consensus and EPS Surprise

Clearway Energy, Inc. Price, Consensus and EPS Surprise

Clearway Energy, Inc. price-consensus-eps-surprise-chart | Clearway Energy, Inc. Quote

Financial Position

Clearway Energy had cash and cash equivalents of $155 million as of Dec 31, 2019, down from $407 million in the comparable period of 2018.

Long-term debt as of Dec 31, 2019 was $4,956 million, reflecting a decline of 9% from $5,447 million in the corresponding period of 2018.

The company's net cash flow from operating activities during 2019 was $477 million compared with $498 million in the comparable prior-year period.


Courtesy of the acquisition of Carlsbad Energy Center in December 2019, it upwardly revised its 2020 cash available for distribution (CAFD) guidance. Clearway Energy expects 2020 CAFD to be $310 million, up from prior expectation of $295 million.

Other Releases

Covanta Holding Corporation CVA reported fourth-quarter 2019 earnings of 9 cents per share, which beat the Zacks Consensus Estimate of 7 cents by 28.6%.

NextEra Energy Partners LP’s NEP fourth-quarter 2019 earnings of 50 cents per unit surpassed the Zacks Consensus Estimate of 44 cents by 13.6%.

FuelCell Energy Inc.’s FCEL fourth-quarter fiscal 2019 loss of 12 cents per share was wider than the Zacks Consensus Estimate of a loss of 7 cents.

Zacks Rank

Clearway Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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