U.S. Markets closed

NRG Energy (NRG) Q1 Loss Wider than Expected, Revenues Miss

Zacks Equity Research

NRG Energy, Inc. NRG reported a loss of 52 cents in the first quarter of 2017 compared with the Zacks Consensus Estimate of a loss of 41 cents. In the year-ago quarter, the company had reported earnings of 24 cents.

Revenues

NRG Energy's quarterly operating revenues of $2,759 million lagged the Zacks Consensus Estimate of $3,295 million by 16.3% and were down 14.5% from $3,229 million reported in the first quarter of 2016.

NRG Energy, Inc. Price, Consensus and EPS Surprise

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

Highlights of the Release

Total operating costs and expenses in the quarter declined 2.5% to $2,714 million from $2,785 million a year ago.

The company’s adjusted EBITDA was $412 million in the first quarter of 2017, down 49.3% from $812 million a year ago.

The company incurred interest expenses of $269 million in the quarter, down 5.3% from $284 million in the year-ago quarter.

Highlights of the Release

As of Mar 31, 2017, NRG Energy had cash and cash equivalents of 1,513 million compared with $ 1,973 million as of Dec 31, 2016.

The company’s long-term debt and capital leases (excluding current portion) were $ 17,672 million as of Mar 31, 2017 compared with $18,006 million as of Dec 31, 2016.

NRG Energy’s net cash used in operating activities was $68 million against cash inflow of $554 million in the prior-year period.

Capital expenditure in first-quarter 2017 was $268 million, down 4% from $279 million in the year-ago period.

Guidance

NRG reaffirmed its 2017 adjusted EBITDA guidance in the range of $2,700–$2,900 million and free cash flow before growth investments of $800–$1,000 million.

Peer Release

American Electric Power Co., Inc. AEP reported first-quarter 2017 operating earnings per share of 96 cents, missing the Zacks Consensus Estimate of 97 cents by 1%.

DTE Energy Company DTE reported first-quarter 2017 operating EPS of $1.79, which surpassed the Zacks Consensus Estimate of $1.57 by 14%.

CMS Energy Corporation CMS reported first-quarter 2017 adjusted EPS of 71 cents, beating the Zacks Consensus Estimate of 65 cents by 9.2%.

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.

5 Trades Could Profit "Big-League" from Trump Policies

If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.

Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
American Electric Power Company, Inc. (AEP): Free Stock Analysis Report
 
CMS Energy Corporation (CMS): Free Stock Analysis Report
 
DTE Energy Company (DTE): Free Stock Analysis Report
 
NRG Energy, Inc. (NRG): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research