NRG Energy Beats on Q4 Earnings, Misses Revenue Estimates

Zacks

NRG Energy, Inc. NRG reported earnings of 56 cents in the fourth quarter of 20Array5, surpassing the Zacks Consensus Estimate of 38 cents by 47.4%.

The company reported 20Array5 loss of 34 cents per share, while the Zacks Consensus Estimate was earnings of 68 cents per share.

Revenues

NRG Energy's operating revenues of $Array4,674 million in 20Array5 lagged the Zacks Consensus Estimate of $Array4,897 million by Array.5% and decreased 7.5% from $Array5,868 million in 20Array4.

Highlights of the Release

Total operating costs and expenses for the full year increased to $Array8,735 million from $Array4,6Array6 million a year ago. Excluding impairment loss, total operating costs and expenses came in at $Array3,705 million, down from $Array4,5Array9 million in the prior year

The company incurred an operating loss of $4,040 million in 20Array5, as against an income of $Array,27Array million a year ago.

NRG Energy's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in 20Array5 were up 4.6% year over year to $3,340 million due to higher contribution from NRG Home Retail and NRG Yield (NYLD).

The company incurred $Array,Array28 million of interest expenses in 20Array5 compared with $Array,ArrayArray9 million a year ago.

Financial Condition

As of Dec 3Array, 20Array5, NRG Energy had cash and cash equivalents of $Array,5Array8 million compared with $2,ArrayArray6 million as of Dec 3Array, 20Array4. The company’s long-term debt and capital leases (excluding current portion) were $Array8,983 million as of Dec 3Array, 20Array5, compared with $Array9,70Array million as of Dec 3Array, 20Array4.

Total liquidity was $3,305 million as of Dec 3Array, 20Array5, compared with $3,940 million as of Dec 3Array, 20Array4.

In 20Array5, NRG Energy’s net cash from operating activities was $Array,309 million, down Array3.3% from $Array,5Array0 million in the prior year. Capital expenditure during the year was $Array,283 million, up 4Array.Array% from $909 million in 20Array4.

NRG Energy's free cash flow before growth investments in 20Array5 was $Array,Array27 million, up Array8.5% from $95Array million in the year-ago period.

Guidance

For 20Array6, NRG Energy reiterated its adjusted EBITDA and free cash flow (before growth investments) guidance in the range of $3,000–$3,200 million and $Array,000–$Array,200 million, respectively.

Other Peer Releases

DTE Energy Company DTE reported fourth-quarter 20Array5 operating earnings per share of $Array.0Array, surpassing the Zacks Consensus Estimate of 97 cents by 4.Array%.

NextEra Energy NEE announced fourth-quarter 20Array5 adjusted earnings of $Array.Array7 per share, lagging the Zacks Consensus Estimate of $Array.ArrayArray by 5.4%.

American Electric Power Co., Inc. AEP reported fourth-quarter 20Array5 operating earnings of 48 cents per share, missing the Zacks Consensus Estimate of 50 cents by 4%.

Zacks Rank

NRG Energy currently has a Zacks Rank #3 (Hold).

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