NRG Energy, Inc. (NRG) reported fourth-quarter 2014 earnings of 21 cents per share, missing the Zacks Consensus Estimate of 93 cents by a wide margin.
For 2014, NRG Energy’s income available for common stockholders stood at $78 million against a loss of $395 million a year ago.
Revenues
NRG Energy's total annual operating revenue of $15.87 billion surpassed the Zacks Consensus Estimate by 8.9%. On a year-over-year basis, the top line shot up 40.4% from $11.3 billion in 2013.
2014 Highlights
For 2014, total operating costs and expenses were $14.62 billion, reflecting a 33.5% year-over-year increase primarily due to higher cost of operations, depreciation expenses, and selling, general and administrative expenses.
The company’s annual operating income was $1.27 billion, up from $0.34 billion a year ago.
NRG Energy's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) surged 18.7% year over year to $3.13 billion due to higher contribution from the NRG Business, NRG Home Retail, NRG Renew and NRG Yield divisions. This was partially offset by unfavorable performance at NRG Home Solar and Corporate.
The company incurred $1.12 billion of interest expenses in 2014 compared with $0.85 billion a year ago.
NRG Energy's free cash flow (before growth investments) in 2014 stood at $0.95 billion, down 25.8% year over year.
Financial Update
As of Dec 31, 2014, NRG Energy had cash and cash equivalents of $2.12 billion compared with $2.25 billion as of Dec 31, 2013.
The company’s long-term debt and capital leases were $19.9 billion as of Dec 31, 2014 versus $15.8 billion as of Dec 31, 2013.
In 2014, NRG Energy’s net cash from operating activities was $1.51 billion compared with $1.27 billion in the year-ago period.
The company invested $0.91 billion as capital expenditure during 2014 versus $1.99 billion in the prior-year period.
Guidance
For 2015, NRG Energy reiterated its guidance for 2015 adjusted EBITDA and free cash flow (before growth investments) in the range of $3.2–$3.4 billion and $1.1–$1.3 billion, respectively.
Other Peer Releases
Exelon Corp. (EXC) reported fourth-quarter 2014 adjusted operating earnings of 48 cents per share, missing the Zacks Consensus Estimate of 51 cents by 5.9%.
PPL Corp. (PPL) reported fourth-quarter 2014 adjusted earnings of 58 cents per share, surpassing the Zacks Consensus Estimate of 51 cents by 13.7%.
Zacks Rank
NRG Energy currently has a Zacks Rank #3 (Hold). A better-ranked stock in the same sector is PG&E Corp. (PCG), carrying a Zacks Rank #2 (Buy).
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