Calpine Earnings: Everything You Must Know Now

Calpine Corp. (NYSE:CPN) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

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Calpine Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.16 in the quarter versus EPS of $-0.14 in the year-earlier quarter.

Revenue: Rose 0.4% to $1.24 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Calpine Corp. reported adjusted EPS loss of $0.16 per share. By that measure, the company missed the mean analyst estimate of $-0.12. It beat the average revenue estimate of $1.08 billion.

Quoting Management: “Our first quarter results were in line with our expectations, driven by a meaningful increase in the price of natural gas that put gas-fired plants back on the margin in Texas and the Southeast,” said Jack Fusco, Calpine’s Chief Executive Officer. “It is worth noting that the quarterly distribution of our 2013 Adjusted EBITDA performance will be different than in past years due to previously announced portfolio changes. Late last year, we sold two non-core contracted plants and bought a merchant plant in Texas; this summer, we will place in service two new contracted plants in California. As a result of these portfolio changes, when combined with a more summer-weighted hedge profile and expected increases in regulatory capacity payments later this year, we expect that a higher proportion of our Adjusted EBITDA will be realized in the second half of 2013. Therefore, we reaffirm our 2013 full-year guidance ranges for Adjusted EBITDA and Adjusted Free Cash Flow of $1,800 million to $1,960 million and $615 million to $775 million, respectively, and our Adjusted Free Cash Flow Per Share estimate of $1.50.”

Key Stats (on next page)…

Revenue decreased 9.22% from $1.37 billion in the previous quarter. EPS increased to $-0.16 in the quarter versus EPS of $-0.19 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.03 to a profit $0.11. For the current year, the average estimate has moved down from a profit of $0.70 to a profit of $0.62 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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