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NRG Energy (NRG) Posts Q4 Earnings, Reaffirms '17 Guidance

Zacks Equity Research

NRG Energy, Inc. NRG reported earnings of 90 cents in the fourth quarter of 2016, as against the Zacks Consensus Estimate of a loss of 10 cents. Reported earnings were also up 60.7% from the year-ago quarter figure of 56 cents.

Revenues

NRG Energy's quarterly operating revenues of $2,819 million lagged the Zacks Consensus Estimate of $3,096 million by 9% and were down 9.1% from $3,102 million reported in the fourth quarter of 2015.

Full-year 2016 revenues were $12,351 million, missing the Zacks Consensus Estimate of $13,440 million by 8.1% and down 15.8% year over year.

Highlights of the Release

Total operating costs and expenses in the quarter declined 6.4% to $895 million from $956 million a year ago.

The company’s adjusted EBITDA was $492 million in the fourth quarter of 2016, down 15.5% from $582 million a year ago.

The company incurred interest expenses of $1,061 million in 2016, down 5.9% from $1,128 million a year ago.

NRG Energy, Inc. Price, Consensus and EPS Surprise

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

Financial Condition

As of Dec 31, 2016, NRG Energy had cash and cash equivalents of $1,973 million, compared with $1,518 million as of Dec 31, 2015.

The company’s long-term debt and capital leases (excluding current portion) were $18,006 million as of Dec 31, 2016, compared with $18,983 million as of Dec 31, 2015.

In 2016, NRG Energy’s net cash from operating activities was $2,072 million, up 58.3% from $1,309 million in the prior-year period.

Capital expenditure in 2016 was $1,244 million, down 3% from $1,283 million in the year-ago period.

Guidance

For 2017, NRG Energy reiterated its adjusted EBITDA and free cash flow (before growth investments) guidance in a range of $2,700–$2,900 million and $800–$1,000 million, respectively.

Peer Releases

American Electric Power Co., Inc. AEP reported fourth-quarter 2016 operating earnings of 67 cents per share, beating the Zacks Consensus Estimate of 55 cents by 21.8%.

NextEra Energy, Inc. NEE reported fourth-quarter 2016 adjusted earnings of $1.21 per share, missing the Zacks Consensus Estimate of $1.29 by 6.2%. Reported earnings were, however, up 3.4% year over year.

WEC Energy Group WEC reported fourth-quarter 2016 adjusted earnings of 61 cents per share, a penny below both the Zacks Consensus Estimate and the year-ago figure.

Zacks Rank

NRG Energy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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