Clearway Energy (CWEN) To Grow On Capex & Renewable Focus
Zacks Investment Research | Dec 09, 2018 08:31PM ET
We have recently issued an updated research report on Clearway Energy, Inc. (NYSE:E) . The company delivered third-quarter 2018 adjusted earnings of 20 cents per share, missing the Zacks Consensus Estimate of 53 cents by 62.26%. Moreover, the bottom line declined from the prior-year’s earnings of 27 cents.
Clearway Energy continues to focus on renewable energy coupled with capex plan and inorganic growth via acquisitions, which will allow the company to gain in the long term.
What’s Aiding the Stock?
Clearway Energy owns and operates utility scale renewable energy and natural gas-fired generation plus thermal and other infrastructure assets, which boast low operating risks and stable cash flows. Most of its generation assets substantially sell all output pursuant to long-term offtake agreements.
The company currently has nearly 9.5-gigawatt (GW) renewable development projects in its pipeline. Clearway Energy’s present portfolio of electric generation assets, which are non-emitting sources, consists of 5,272 MW of wind, solar and natural gas-fired power generation facilities. These clean developmental projects will further strengthen the company’s operation and create its growth opportunities.
The company plans to invest in the $593-$603 million range for 2019 to further expand its operations. A major chunk of this expenditure will be directed to complete its clean power generation projects in order to keep its generation portfolio in line with the current environmental regulations. Also, the company’s focus on North American markets will allow it to leverage its regional knowledge in the power market and boost the overall performance. Additionally, the Carlsbad acquisition and the probable buyout of further interests in Agua Caliente will consolidate the company’s operations.
However, renewable power generation is subject to favorable weather conditions that could not be assured always. Dependence on performance of third-party transmission lines could also impact Clearway Energy’s performance.
Price Movement
Clearway Energy’s stock has rallied about 5.9% in the past six months against the Zacks Investment Research
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