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 Friday, September 30, 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 55 cents per share, a decline of 36.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 54 cents. Between one and three months ago, the average estimate moved up, but it has been unchanged at 55 cents during the last month. For the year, analysts are projecting net income of 99 cents per share, a decline of 46.2% from last year.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by 8 cents, reporting profit of 46 cents per share against a mean estimate of net income of 38 cents. In the first quarter, the company exceeded forecasts by 13 cents with profit of 28 cents versus a mean estimate of net income of 15 cents.

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Wall St. Revenue Expectations: On average, analysts predict $3.04 billion in revenue this quarter, a rise of 13.4% from the year ago quarter. Analysts are forecasting total revenue of $10.22 billion for the year, a rise of 15.5% from last year’s revenue of $8.85 billion.

Analyst Ratings: Analysts are bullish on this stock with seven analysts rating it as a buy, none rating it as a sell and three rating it as a hold.

Key Stats:

A year-over-year revenue increase in the second quarter snaps a streak of three consecutive quarters of revenue declines. Revenue rose 6.8% in the second quarter and 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 in the latest quarter follows losses in the previous two quarters. The company reported a profit of $621 million in the second quarter, 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 June 30, 2011 to September 26, 2011, the stock price had fallen $2.66 (-10.8%) from $24.58 to $21.92. 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 $2.38 (+12.2%) year to date.

(Source: Xignite Financials)

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