The 10-second takeaway
For the quarter ended Dec. 31 (Q4), NRG Energy whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share expanded. GAAP earnings per share expanded.
Margins increased across the board.
NRG Energy reported revenue of $2.06 billion. The three analysts polled by S&P Capital IQ looked for revenue of $2.75 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.19. The five earnings estimates compiled by S&P Capital IQ predicted -$0.08 per share. Non-GAAP EPS were $0.19 for Q4 versus -$0.48 per share for the prior-year quarter. GAAP EPS were $2.06 for Q4 compared to -$0.48 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.8%, 810 basis points better than the prior-year quarter. Operating margin was 6.1%, 570 basis points better than the prior-year quarter. Net margin was 25.0%, much better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.37 billion. On the bottom line, the average EPS estimate is -$0.15.
Next year's average estimate for revenue is $14.30 billion. The average EPS estimate is $0.94.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 700 members out of 717 rating the stock outperform, and 17 members rating it underperform. Among 207 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 204 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 $25.88.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.