NRG Energy Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component NRG Energy (NYSE:NRG) will unveil its latest earnings on Wednesday, October 31, 2012. NRG Energy owns and operates power generation facilities and is involved in the transacting of fuel and transportation services and related products.

NRG Energy Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 53 cents per share, a rise of 23.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 48 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 53 cents during the last month. For the year, analysts are projecting net income of $1 per share, a rise of 37% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the second quarter, it reported profit of $1.08 per share against a mean estimate of net income of 16 cents per share. In the first quarter, it missed forecasts by 81 cents.

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A Look Back: In the second quarter, profit fell 59.6% to $251 million ($1.08 a share) from $621 million ($2.53 a share) the year earlier, but exceeded analyst expectations. Revenue fell 4.9% to $2.17 billion from $2.28 billion.

Stock Price Performance: Between August 1, 2012 and October 25, 2012, the stock price rose $2.50 (12.7%), from $19.75 to $22.25. The stock price saw one of its best stretches over the last year between September 28, 2012 and October 9, 2012, when shares rose for eight straight days, increasing 7.9% (+$1.70) over that span. It saw one of its worst periods between November 11, 2011 and November 25, 2011 when shares fell for 10 straight days, dropping 14.6% (-$3.20) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.27 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Key Stats:

The company is riding some good income statement momentum into the upcoming earnings announcement. After taking losses in the third quarter of the last fiscal year, the fourth of the last fiscal year and the first quarter, the company finished in the black with income of $251 million in the second.

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 6.7% in the first quarter and dropped again in the second quarter.

Wall St. Revenue Expectations: On average, analysts predict $2.75 billion in revenue this quarter, a rise of 3% from the year-ago quarter. Analysts are forecasting total revenue of $10.49 billion for the year, a rise of 15.5% from last year’s revenue of $9.08 billion.

Analyst Ratings: With six analysts rating the stock a buy, none rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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