NRG Energy, Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component NRG Energy, Inc. (NYSE:NRG) will unveil its latest earnings on Thursday, November 3, 2011. NRG Energy owns and operates power generation facilities and is involved in the transacting of fuel and transportation services and related products.

NRG Energy, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 38 cents per share, a decline of 56.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 62 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 55 cents during the last month. For the year, analysts are projecting net income of 77 cents per share, a decline of 58.2% from last year.

Past Earnings Performance: The company is looking to make a streak of three quarters of beating estimates. Last quarter, it beat expectations by reporting profit of 46 cents per share, and the previous quarter, it had net income of 28 cents.

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Wall St. Revenue Expectations: On average, analysts predict $2.97 billion in revenue this quarter, a rise of 10.8% from the year ago quarter. Analysts are forecasting total revenue of $9.65 billion for the year, a rise of 9% from last year’s revenue of $8.85 billion.

Analyst Ratings: Analysts are bullish on this stock with six analysts rating it as a buy, none rating it as a sell and three rating it as a hold. A Look Back: In the second quarter, profit rose more than twofold to $621 million ($2.53 a share) from $211 million (81 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 6.8% to $2.28 billion from $2.13 billion.

Key Stats: A year-over-year revenue increase in the second quarter snapped a streak of three consecutive quarters of revenue declines. Revenue fell 9.9% in the first quarter, 15.2% in the fourth quarter of the last fiscal year and 7.9% in the third quarter of the last fiscal year. NRG Energy’s profit last quarter followed losses in the previous two quarters. The company reported a loss of $260 million in the first quarter and a loss of $15 million in the fourth quarter of the last fiscal year.

Competitors to Watch: Dynegy Inc. (NYSE:DYN), Constellation Energy Group, Inc. (NYSE:CEG), The AES Corporation (NYSE:AES), Genon Energy Inc (NYSE:GEN), Calpine Corporation (NYSE:CPN), Edison International (NYSE:EIX), NextEra Energy, Inc. (NYSE:NEE), Xcel Energy Inc. (NYSE:XEL), The Southern Company (NYSE:SO), and Exelon Corporation (NYSE:EXC).

Stock Price Performance: During September 1, 2011 to October 28, 2011, the stock price had fallen $1.84 (-7.8%) from $23.55 to $21.71. The stock price saw one of its best stretches over the last year between January 19, 2011 and January 27, 2011 when shares rose for seven-straight days, rising 7.4% (+$1.48) over that span. It saw one of its worst periods between July 25, 2011 and August 4, 2011 when shares fell for nine-straight days, falling 12.8% (-$3.25) over that span. Shares are up $2.17 (+11.1%) year to date.

(Source: Xignite Financials)

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