NRG Energy Inc
) posted third-quarter earnings per share of 73 cents, lagging
the Zacks Consensus Estimate of 80 cents by 8.8%.
NRG Energy's total operating revenues of $3.49 billion surpassed
the Zacks Consensus Estimate of $2.81 billion by 24.2% and the
year-ago revenue of $2.33 billion by 49.8%.
Highlights of the Release
NRG Energy's total operating expenses were $2.95 billion, up
31.7% year over year due to higher cost of operations,
depreciation charges, and selling, general and administrative
NRG Energy's adjusted earnings before interest, taxes,
depreciation, and amortization (EBITDA) during the quarter were
$1 billion, up 47.5% year over year on favorable performances
from the East, West, Alternate Energy, NRG Yield and Retail
segments. These were partially offset by decreases in adjusted
EBITDA from the Wholesale Gulf Coast - Texas, Other segments.
Operating income in the reported quarter was $535 million versus
$86 million in the year ago quarter.
Interest expenses increased 39.9% year over year to $228 million
primarily due to a higher debt level.
The company was able to enhance its retail customer base by 5,000
sequentially in the reported quarter.
NRG Energy's cash and cash equivalents as of Sep 30, 2013, was
$2.13 billion versus $2.09 billion as of Dec 31, 2012.
As of Sep 30, 2013, long-term debt and capital leases were $15.8
billion versus $15.7 billion as of Dec 31, 2012.
Net cash provided from operating activities during the first nine
months of 2013 was $0.8 billion versus $1.01 billion in the
comparable year-ago period.
NRG Energy's capital expenditures in the first nine months of
2013 were $1.58 billion, down from $2.47 billion invested in the
prior-year comparable period.
During the first nine months of the year the company utilized $25
million to repurchase 0.97 million shares. NRG Energy is still
left with $175 million under its authorization. However, due to
the pending EME acquisition, the company might not repurchase any
shares in the remaining days of 2013.
The upper end of NRG Energy's full-year 2013 adjusted EBITDA
guidance was lowered marginally to the range of $2.55-$2.6
billion from $2.55-$2.7 billion guided earlier.
The company's full-year 2013 free cash flow (before growth
investments) guidance is in the range of $1.125-$1.175 billion,
narrowed from the previous expectation of $1.05-$1.20 billion.
NRG Energy lowered its 2014 adjusted EBITDA to the range of
$2.7-$2.9 billion from $2.85-$3.05 billion earlier. 2014 free
cash flow (before growth investments) guidance is in the range of
$0.95-$1.15 billion, down from the previous expectation of
Other Company Releases
) announced third quarter earnings of 78 cents per share, beating
the Zacks Consensus Estimate of 66 cents by 18.2%.
American Electric Power Co. Inc.
) reported third quarter earnings of $1.10 per share, surpassing
the Zacks Consensus Estimate of $1.08 by 1.9%.
NRG Energy missed our earnings estimates in the reported quarter.
However, its focus to generate green power is appreciable.
In Oct 2013, the company decided to acquire Edison Mission Energy
(EME), a subsidiary of
) for a purchase price of $2.64 billion. The EME buyout will add
nearly 8,000 megawatt (MW) of capacity to NRG Energy's generation
portfolio and diversify its generation portfolio.
With more than 40% of the power generation from EME to come from
wind power and gas-fired units, NRG Energy will be well supported
to create its eco friendly generation portfolio.
NRG Energy currently has a Zacks Rank #2 (Buy).
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