The 10-second takeaway
For the quarter ended June 30 (Q2), NRG Energy whiffed on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share shrank significantly.
Gross margins increased, operating margins expanded, and net margins contracted.
NRG Energy chalked up revenue of $2.17 billion. The four analysts polled by S&P Capital IQ predicted revenue of $2.57 billion on the same basis. GAAP reported sales were 4.9% lower than the prior-year quarter's $2.28 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.08. The six earnings estimates compiled by S&P Capital IQ forecast $0.30 per share. GAAP EPS of $1.08 for Q2 were 57% lower than the prior-year quarter's $2.53 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.1%, 970 basis points better than the prior-year quarter. Operating margin was 18.3%, 650 basis points better than the prior-year quarter. Net margin was 11.6%, 1,570 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.77 billion. On the bottom line, the average EPS estimate is $0.67.
Next year's average estimate for revenue is $9.63 billion. The average EPS estimate is $0.92.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 719 members out of 732 rating the stock outperform, and 13 members rating it underperform. Among 191 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 188 give NRG Energy a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NRG Energy is outperform, with an average price target of $21.58.
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