NRG Energy (NRG) Q1 Earnings Beat, Restructuring On Track

NRG Energy, Inc. (NYSE:NRG) reported earnings of 87 cents per share in the first quarter of 2018, beating the Zacks Consensus Estimate of break even by a wide margin.

Revenues

NRG Energy posted revenues of $2,421 million in the quarter, beating the Zacks Consensus Estimate of $2,234 million by 8.4%. The quarterly revenues improved by 1.63% year over year.

Highlights of the Release

Operation & Maintenance and Other cost of operations in the first quarter was $2,017 million, down 15.8% from $2,396 in the year-ago quarter.

Adjusted EBITDA in the first quarter was $549 million compared with $385 million in the year-ago period.

At the end of first-quarter 2018, the company realized $80 million of its 2018 cost savings target as part of its announced Transformation Plan.

Financial Highlights

As of Mar 31, 2018, NRG Energy had cash and cash equivalents of $764 million compared with $991 million as of Dec 31, 2017.

As of Mar 31, 2018, the company’s long-term debt and capital leases (excluding current portion) were $15,406 million, compared with $15,716 million as of Dec 31, 2017.

The company’s net cash provided/(used) in operating activities in the first quarter of 2018 was $357 million, compared with ($82) million in the prior-year period.

Capital expenditure in the first quarter of 2018 was $358 million, up 517% from $236 million in the first quarter of 2017.

The NRG board of directors has authorized $1 billion for share repurchases, with the first $500 million program to begin immediately. During the first quarter, NRG Energy repurchased 3.1 million shares of its common stock for $93 million at an average cost of $29.75 per share.

Guidance

NRG Energy reaffirmed 2018 adjusted EBITDA guidance in the range of $2,800-$3,000 million and free cash flow before growth investments within $1,550-$1,750 million.

Zacks Rank

Currently, NRG Energy sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Utility Releases

ALLETE, Inc. (NYSE:ALE) reported first-quarter 2018 adjusted earnings of 99 cents per share, in line with the Zacks Consensus Estimate.

WEC Energy Group (NYSE:WEC) reported first-quarter 2018 operating earnings of $1.23 per share, beating the Zacks Consensus Estimate of $1.16 by 6.03%.

FirstEnergy Corp. (NYSE:FE) reported first-quarter 2018 operating earnings of 67 cents per share, lagging the Zacks Consensus Estimate of 68 cents by 1.5%.

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