NRG Energy Inc.
) posted fourth-quarter 2012 earnings per share of $2.06, beating
the Zacks Consensus Estimate of a loss of 29 cents. Reported
earnings were higher than a loss of 48 cents per share in the
prior-year quarter. The improvement in earnings was primarily
driven by a bargain purchase-gain of $560 million associated with
the GenOn merger.
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The company's earnings of $2.35 per share in 2012 were higher
than the Zacks Consensus Estimate by $1.22. Annual earnings per
share increased 201.3% year over year.
NRG Energy's quarterly total operating revenue of $2.06 billion
was 46.9% lower than the Zacks Consensus Estimate. Quarterly
revenue decreased 3.2% from $2.13 billion in the year-ago
Full-year 2012 revenue was $8.42 billion, down 18.4% from the
Zacks Consensus Estimate. Revenue was also 7.2% lower than the
Highlights of the Release
Quarterly total operating expenses were $2.0 billion, down 4.6%
year over year due to lower cost of operations and a decline in
Operating income in the quarter increased 311.1% year over year
to $37 million primarily due to the minimization of operating
Interest expenses increased 3.1% year over year to $166 million
in the fourth quarter primarily due to a higher debt level.
NRG Energy's adjusted earnings before interest, taxes,
depreciation, and amortization (EBITDA) during the quarter were
$420 million, up 7.7% year over year on strong performances from
segments. These were partially offset by decreases in adjusted
EBITDA from the
As of Dec 31, 2012, the company had $2.1 billion of cash and cash
equivalents versus $1.1 billion as of Dec 31, 2011.
Long-term debt and capital leases as of Dec 31, 2012, were $15.7
billion versus $9.7 billion as of Dec 31, 2011.
Net cash provided by operating activities for the twelve months
ended Dec 31, 2012 was $1.15 billion, lower than $1.17 billion in
the year-ago comparable period.
Capital expenditure for year increased to $3.4 billion from $2.3
billion in 2011.
NRG Energy's full-year 2013 and 2014 adjusted EBITDA guidance is
in the range of $2,535-$2,735 million and $2,700-$2,900 million,
The company's guidance for cash flow from operations is
$1,525-$1,725 million for 2013 and $1,550-$1,750 million for
The board of directors of the company plans to increase the
annual common stock dividend by 33% to 48 cents per share,
mention in cents starting from the next quarterly payment.
The company is authorized to repurchase its common stock worth
Other Utility Company Releases
) reported fourth quarter 2012 earnings of 75 cents per share
compared with 53 cents per share in the year-ago quarter. The
company's earnings were in line with the Zacks Consensus
CMS Energy Corporation
) announced earnings of 25 cents per share for the fourth quarter
of 2012, beating the Zacks Consensus Estimate of 24 cents. The
results were also above the year-ago earnings of 15 cents per
share on both adjusted and GAAP basis.
DTE Energy Company
) reported fourth quarter 2012 operating earnings of 85 cents per
share, in line with the Zacks Consensus Estimate. However,
earnings were below the year-ago figure of 89 cents per share.
Positive impacts from the GenOn merger helped NRG Energy to
improve its quarterly as well as full-year 2013 earnings results
and we believe this merger continues to add some momentum to the
company's financial prospects.
In 2012, customer headcount increased by 42,000, 91,000 and
51,000 in the Retail, East and Texas. We believe the commencement
of operations at the newly installed Alpine Generating Station
and Avra Valley Solar Generating Station will enable the company
to meet the growing demand.
The prevailing weak commodity price environment is likely to pose
challenges to the company's near-term performance.
Princeton, New Jersey and Houston, Texas-based NRG Energy Inc.
together with its subsidiaries operates as an integrated
wholesale power generation and retail electricity company. The
company currently has a Zacks Rank #3 (Hold).