NRG Energy (NRG) Q4 Sales Beat Estimates, 2017 Loss Widens

NRG Energy, Inc. (NYSE:NRG) reported loss of $4.30 per share in the fourth quarter of 2017, much wider than the year-ago loss of $2.51.

Revenues

NRG Energy posted revenues of $2,458 million in the quarter, beating the Zacks Consensus Estimate of $2,234 million by 10%.

NRG Energy, Inc. Price, Consensus and EPS Surprise

NRG Energy, Inc. Price, Consensus and EPS Surprise | NRG Energy, Inc. Quote

Highlights of the Release

Operation & Maintenance and Other cost of operations in the fourth quarter was $449 million, down 7.2% from $484 the year-ago quarter.

Adjusted EBITDA in the fourth quarter was $497 million compared with $471 million in the year-ago period.

Thanks to Transformation Plan, at the end of fourth-quarter 2017, the company reduced costs by $150 million or 231% of its 2017 cost savings target.

To date, the company has announced or closed asset sales of nearly $3 billion, which is close to its Transformation Plan target of $3.2 billion.

Financial Highlights

As of Dec 31, 2017 NRG Energy had cash and cash equivalents of $991 million compared with $938 million as of Dec 31, 2016.

As of Dec 31, 2017 the company’s long-term debt and capital leases (excluding current portion) were $15,716 million compared with $15,957 million as of Dec 31, 2016.

The company’s net cash provided in operating activities in the 2017 was $1,387 million compared with $2,088 million in the prior-year period.

Capital expenditure in 2017 was $1,111 million, up 13.8% from $976 million in 2016.

The NRG board of directors has authorized $1 billion for share repurchases, with the first $500 million program to begin immediately. The remaining buyback of $500 million will be completed once the company completes its announced asset sales.

Guidance

NRG Energy reaffirmed 2018 adjusted EBITDA guidance in the range of $2,800-$3,000 million and free cash flow before growth investments in a range of $1,550-$1,750 million.

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.

Peer Releases

NextEra Energy, Inc. (NYSE:NEE) reported fourth-quarter 2017 adjusted earnings of $1.25 per share, lagging the Zacks Consensus Estimate of $1.31 by 4.6%.

Dominion Energy (NYSE:D) reported fourth-quarter 2017 operating earnings of 91 cents per share, beating the Zacks Consensus Estimate of 88 cents by 3.4%.

FirstEnergy Corp. (NYSE:FE) reported fourth-quarter 2017 operating earnings of 71 cents per share, beating the Zacks Consensus Estimate of 69 cents by 2.9%.

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