Financial Data and Key Metrics - Adjusted EBITDA for Q2 2024 was $935 million, a 14% YoY increase, bringing YTD adjusted EBITDA to $1.784 billion, up 22% YoY [7] - Free cash flow before growth was $663 million, exceeding prior year results by $238 million [12] - The company reaffirmed its 2024 guidance ranges, trending toward the upper end, with adjusted EBITDA expected to be between $3.3 billion and $3.55 billion, and free cash flow before growth between $1.825 billion and $2.075 billion [16] Business Line Performance - Home energy subscribers increased by 8% with stable margins, while smart home subscribers grew by 5% with a 7% increase in revenue [7] - The East/West/Services/Other segments produced $282 million in adjusted EBITDA, a $184 million increase YoY, driven by higher subscriber counts and lower retail supply costs [12] - Texas adjusted EBITDA was $452 million, slightly down YoY due to higher maintenance costs and the impact of asset sales [13] - The smart home business generated $201 million in adjusted EBITDA, with a 5% increase in subscribers and 4% growth in service margins [15] Market Performance - Texas experienced over 3% weather-normalized load growth in H1 2024, with ERCOT projecting more than 60 gigawatts of growth through 2030, driven by data centers and large load customers [9] - The company is advancing 1.5 gigawatts of brownfield natural gas development in Texas, with applications submitted to the Texas Energy Fund [10] Strategic Direction and Industry Competition - The company is focused on delivering shareholder value through customer-centric energy and smart home solutions, with a strong emphasis on electrification trends and GenAI data center growth [4][6] - NRG is leveraging its integrated platform to stabilize near-term earnings while capturing medium- to long-term growth opportunities [5] - The company is progressing on its Virtual Power Plant offering and expects to share more details by Q3 2024 [7] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic positioning, citing a structural long-term tightening in power supply and demand [4] - The company is well-prepared for seasonal demand, with 97% reliability during Hurricane Beryl and no storm-induced outages [8] - Management highlighted the potential for significant load growth in Texas and the broader industry, driven by on-shoring and data center expansion [9] Other Important Information - The company completed $176 million of its $825 million share repurchase program for 2024 and announced the sale of Airtron HVAC, expected to yield $400 million in net proceeds [17][18] - NRG has $441 million of unallocated capital available for 2024, with plans to evaluate its use after the Airtron sale closes [18] Q&A Session Summary Question: Potential for a second Texas Energy Fund tranche and newbuild bandwidth [23] - Management noted that while the state has discussed a second tranche, the focus is on shovel-ready projects, with only 12 gigawatts of real projects currently identified [24] - The company has bandwidth for additional generation if customer demand and portfolio strategy align, but lead times for development are several years [26] Question: Transition to EPS disclosures [27] - The company plans to transition to EPS disclosures by Q3 2024, with no immediate changes to guidance [27] Question: Texas power curve pullback and retail business impact [32] - Management attributed the curve pullback to a warm but not pricey summer, with long-term bullishness on the market [33] - The retail business performed strongly, with 8% subscriber growth and double-digit volume growth, despite regulatory changes in some states [34] Question: Newbuild strategy and long-term contracts [35] - NRG emphasized that its newbuild projects are not speculative but designed to support its retail portfolio, with potential for long-term contracts if customer demand aligns [36] Question: Data center opportunity and HVAC divestiture proceeds [41][44] - The company is conducting a strategic review of its data center opportunities and expects to share more details by year-end [43] - Proceeds from the HVAC divestiture will be allocated in line with the company's capital allocation principles [44] Question: PJM auction outcome and newbuild potential [48][64] - The PJM auction outcome is supportive of generation but unlikely to spur immediate newbuild activity due to supply chain and interconnection challenges [49][65] - New gas plants in PJM face significant lead times, with no new projects expected before 2030 [67]

NRG Energy, Inc. (NRG) reported second-quarter 2024 earnings of $1.48 per share, which beat the Zacks Consensus Estimate of $1.30 by 13.9%. The bottom line also increased 34.5% from the year-ago quarter's figure of $1.10. Revenues Total revenues were $6.66 billion, which beat the Zacks Consensus Estimate of $4.48 billion by 48.6%. The top line improved 4.9% from the prior-year quarter's level of $6.35 billion. Highlights of the Release The company recorded adjusted EBITDA of $935 million, up 14.2% from $819 ...

NRG Energy (NRG) came out with quarterly earnings of $1.48 per share, beating the Zacks Consensus Estimate of $1.30 per share. This compares to earnings of $1.10 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 13.85%. A quarter ago, it was expected that this power company would post earnings of $0.92 per share when it actually produced earnings of $0.80, delivering a surprise of -13.04%. Over the last four quarters, the compan ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about NRG Energy (NRG) . NRG currently has an average brokerage recomm ...

NRG Energy, Inc. (NRG) is scheduled to release second-quarter 2024 results on Aug 8, before market open. The company delivered a negative earnings surprise of 13% in the last reported quarter. Let's discuss the factors that are likely to be reflected in the upcoming quarterly results. Factors to Consider NRG Energy's earnings are expected to have continued to benefit from the integration of Vivint Smart Home service. This initiative might have increased margin per customer through a higher take rate of prod ...

Core Viewpoint - The market anticipates NRG Energy (NRG) to report a year-over-year increase in earnings despite a decline in revenues when it releases its quarterly results for June 2024 [1][2]. Earnings Expectations - NRG is expected to post quarterly earnings of $1.30 per share, reflecting an 18.2% increase year-over-year [3]. - Revenues are projected to be $4.48 billion, which is a decrease of 29.4% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 4.67% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for NRG matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the potential deviation of actual earnings from the consensus estimate, with a strong predictive power for positive readings [6][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have shown a nearly 70% success rate in delivering positive surprises [8]. Historical Performance - In the last reported quarter, NRG was expected to earn $0.92 per share but only achieved $0.80, resulting in a surprise of -13.04% [11]. - Over the past four quarters, NRG has beaten consensus EPS estimates three times [12]. Conclusion - NRG does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding this stock ahead of its earnings release [15].

Company Overview - For the full year, earnings are projected at $6.61 per share, with revenue expected to be $25.28 billion, reflecting changes of +53.01% and -12.31% from the previous year respectively [1] - NRG Energy's stock has decreased by 4.52% in the past month, underperforming the Utilities sector's gain of 2.98% and the S&P 500's gain of 0.1% [2] - The company currently holds a Zacks Rank of 4 (Sell), with a recent 0.67% decline in the Zacks Consensus EPS estimate [4] Earnings Forecast - NRG Energy is set to release its earnings report on August 8, 2024, with an expected EPS of $1.30, which is an 18.18% increase from the prior-year quarter [8] - The consensus estimate for revenue in the upcoming quarter is $4.48 billion, indicating a 29.4% decline compared to the same quarter of the previous year [8] Valuation Metrics - NRG Energy is currently trading at a Forward P/E ratio of 11.24, which is lower than the industry's average Forward P/E of 15.94 [10] Industry Context - The Utility - Electric Power industry is part of the broader Utilities sector and currently holds a Zacks Industry Rank of 71, placing it in the top 29% of over 250 industries [5] - The Zacks Rank system has a strong track record, with stocks rated 1 producing an average annual return of +25% since 1988 [4]

Company Overview - NRG Energy is expected to report earnings on August 8, 2024, with a forecasted EPS of $1.38, reflecting a 25.45% increase from the same quarter last year [1] - The revenue forecast for NRG Energy is $4.59 billion, indicating a 27.75% decline compared to the corresponding quarter of the prior year [1] - Full-year Zacks Consensus Estimates predict earnings of $6.63 per share and revenue of $25.46 billion, representing year-over-year changes of +53.47% and -11.68%, respectively [9] Market Performance - NRG Energy's shares have decreased by 5.77% over the last month, underperforming the Utilities sector's gain of 0.93% and the S&P 500's gain of 1.96% [4] - As of the latest market close, NRG Energy's stock price was $76.61, with a -0.31% change compared to the previous day, lagging behind the S&P 500's daily loss of 0.16% [8] Valuation Metrics - NRG Energy is currently trading at a Forward P/E ratio of 11.6, which is a discount compared to the average Forward P/E of 15.78 for its industry [6] Industry Context - The Utility - Electric Power industry, which includes NRG Energy, has a Zacks Industry Rank of 75, placing it in the top 30% of over 250 industries [3] - The Zacks Rank system indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [11]

Company Performance - NRG Energy closed at $76.43, reflecting a +1.38% change from the previous day, outperforming the S&P 500's gain of 0.64% [1] - Over the last month, NRG Energy's shares decreased by 4.02%, underperforming the Utilities sector's loss of 2.06% and the S&P 500's gain of 3.82% [7] Analyst Estimates - Recent analyst estimates for NRG Energy have shown upward revisions, indicating positive sentiment regarding the company's business operations and profit generation capabilities [2] - The upcoming earnings report is expected to show earnings of $1.38 per share, representing a year-over-year growth of 25.45%, while revenue is forecasted at $4.59 billion, indicating a 27.75% decline compared to the same quarter last year [4] Industry Context - NRG Energy operates within the Utility - Electric Power industry, which has a Zacks Industry Rank of 102, placing it in the top 41% of over 250 industries [3] - The Zacks Rank system indicates that NRG Energy currently holds a rank of 3 (Hold), with the consensus EPS estimate remaining unchanged over the last 30 days [5] Valuation Metrics - NRG Energy has a Forward P/E ratio of 11.38, which is lower than the industry average Forward P/E of 15.68, suggesting that NRG Energy is trading at a discount compared to its peers [11] Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of $6.63 per share and revenue of $25.46 billion, reflecting changes of +53.47% and -11.68% respectively from the previous year [10]

The latest trading session saw NRG Energy (NRG) ending at $79.26, denoting a +0.88% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.07%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.14%. Shares of the power company witnessed a loss of 1.75% over the previous month, beating the performance of the Utilities sector with its loss of 4.73% and underperforming the S&P 500's gain of 4.34%. Market participants will be closely followi ...