NRG: Earnings

Merchant power player NRG Energy (NRG) is slated to report its first-quarter earnings on May 2. According to consensus estimates, NRG will report earnings of $0.56 per share for the quarter, which ended on March 31. In the same quarter last year, NRG reported earnings of $0.87 per share.

NRG’s business mix improved over the last few years, driven by a transformation plan devised by activist shareholders. Since then, the stock has more than doubled over the last two years, outperforming broader utilities (XLU). It will be interesting to see how NRG stock reacts to its Q1 earnings.

NRG Energy Stock: Where Things Stand ahead of Q1 Earnings

Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

Earnings drivers

Based on consensus estimates, NRG will post total revenues of $2.15 billion in Q1 2019 against revenues of $2.42 billion in the same period last year, which represents a revenue fall of approximately 11% year-over-year.

NRG management has provided an adjusted EBITDA guidance range of $1.85 billion–$2.05 billion in 2019, implying an increase of 10% year-over-year. The contribution from its Retail segment increased compared to its mainstay Generation segment over the last couple of years. For 2019, NRG management expects earnings from both these segments to grow ~10% compared to 2018.

As per the transformation plan, NRG Energy trimmed down its total debt burden significantly in the last few quarters. At the beginning of 2018, the debt was close to $17 billion. At the end of the fourth quarter, NRG’s debt stood at ~$6.5 billion.

NRG Energy completed a $1.5 billion share repurchase program in 2018, and it intends to repurchase more—worth $1.0 billion shares—this year.

The electric utility FirstEnergy (FE) reported its first-quarter earnings on April 23. Check out Highlights from FirstEnergy’s Q1 2019 Earnings.

Latest articles

19 May

Chinese Stocks are Getting Crushed

WRITTEN BY JP Gravitt

In the last month the CSI 300 is down 11.5%, much more than US indices.

JCPenney (JCP) is slated to announce its results for the first quarter of fiscal 2019, which ended on May 4, on May 21.

17 May

What to Know about the US-China Trade War

WRITTEN BY Mayur Sontakke, CFA, FRM

The key point of contention in the US-China trade dispute is the large trade deficit the United States runs against China.

On May 16, the Labor Department reported jobless claims for last week. Initial jobless claims fell by 16,000 to 212,000 for the week ended May 11.

Jeffrey Gundlach recommended investors take advantage of the volatility in interest rates at the recent Sohn Conference.

Tesla (TSLA) has fallen 4.2% as of 11:55 AM EDT on May 17. While US equity markets opened in the red today, they've recouped their losses.

172.31.16.229