NRG Energy Earnings: Here’s Why Shares are Down Now

NRG Energy, Inc. (NYSE:NRG) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.49%.

NRG Energy, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 63.89% to $0.39 in the quarter versus EPS of $1.08 in the year-earlier quarter.

Revenue: Rose 35.23% to $2.93 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: NRG Energy, Inc. reported adjusted EPS income of $0.39 per share. By that measure, the company beat the mean analyst estimate of $0.23. It beat the average revenue estimate of $2.29 billion.

Quoting Management: “While our current results have been impacted by a continuation of extraordinarily mild weather into the critical summer air conditioning season, particularly in Texas, we remain intensely focused across our Company on achieving the best possible results for 2013 under the circumstances while positioning the Company to realize the full financial potential of the GenOn combination in 2014,” said David Crane, NRG President and Chief Executive Officer. “We also are pleased that the strategic positioning of the Company has been considerably enhanced going forward as a result of the successful IPO of NRG Yield as the continued commodity weakness afflicting the merchant sector has made the long term contracted portion of our business a key component of our growth platform.”

Key Stats (on next page)…

Revenue increased 40.75% from $2.08 billion in the previous quarter. EPS increased to $0.39 in the quarter versus EPS of $-0.79 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 $0.8 to a profit $1.01. For the current year, the average estimate has moved down from a profit of $0.95 to a profit of $0.84 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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