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Clearway Energy (CWEN) Incurs Loss in Q2, Lowers 2019 View

Zacks Equity Research

Clearway Energy Inc. CWEN reported second-quarter 2019 loss of 22 cents per share against earnings of 61 cents in the year-ago period. The reported loss also fared unfavorably with the Zacks Consensus Estimate of earnings per share of 40 cents.

Total Revenues

The company's total revenues in second-quarter 2019 were $284 million, surpassing the Zacks Consensus Estimate of $279 million by 1.8%. However, the top line was down 7.5% from the year-ago reported figure.

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

Highlights of the Release

During the reported quarter, Clearway Energy experienced weak renewable energy conditions across the portfolio, which largely affected its performance.

Total operating expenses in the second quarter amounted to $197 million, increasing 20.8% from a year ago.

Operating income in the reported quarter was $87 million, down 39.6% from the year-ago level.

Interest expenses amounted to $130 million, increasing 83.1% from a year ago.

Financial Position

Clearway Energy had cash and cash equivalents of $93 million as of Jun 30, 2019, down from $407 million on Dec 31, 2018.

Long-term debt as of Jun 30, 2019 was $4,192 million, reflecting a decline of 23% from $5,447 million on Dec 31, 2018.

The company's net cash flow from operating activities during the first half of 2019 was $150 million compared with $181 million in the comparable prior-year period.

Guidance

Clearway Energy reduced its full-year 2019 cash available for distribution (CAFD) guidance to $250 million from $270 million to account for the previously disclosed impact of the CVSR facility outage in June and year to date renewable resource performance.

Zacks Rank

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

Other Releases

DTE Energy Company DTE reported second-quarter 2019 operating earnings per share of 99 cents, which missed the Zacks Consensus Estimate of $1.09 by 9.2%.

Xcel Energy Inc. XEL posted second-quarter 2019 operating earnings of 46 cents per share, which lagged the Zacks Consensus Estimate of 53 cents by 13.21%.

CMS Energy Corp. CMS reported second-quarter 2019 adjusted EPS of 33 cents, which missed the Zacks Consensus Estimate of 44 cents by 25%.

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