NRG Energy, Inc. (NRG) is a prominent utility company based in Houston, Texas. Commanding a market cap of $15.5 billion, it produces, sells, and delivers energy and related services to residential, industrial, and commercial consumers in the U.S. The utility company is expected to announce its fiscal second-quarter earnings for 2024 on Thursday, Aug. 8, before the market opens.
Ahead of the event, analysts expect NRG Energy to report a profit of $1.30 per share, up 18.2% from $1.10 per share in the year-ago quarter. The company has surpassed the bottom-line estimates in three of the last four quarters while missing on one other occasion. In the last reported quarter, NRG Energy’s EPS of $0.80 failed to surpass the consensus estimate by 13%.
For the full year 2024, analysts expect NRG Energy to report EPS of $4.50, up 4.2% from $4.32 in fiscal 2023. Looking ahead, its EPS is expected to rise 18.7% annually to $5.34 in fiscal 2025.
NRG stock has rallied 43.5% on a YTD basis, significantly outperforming the S&P 500 Index’s ($SPX) 13.8% gains and the S&P 500 Utilities Sector SPDR's (XLU) 12.2% increase over the same period.
NRG stock’s robust price momentum in the broader market can be attributed to the surging gas and power prices. As a Fortune 500 company operating in the U.S. and Canada, NRG advocates for competitive energy markets and customer choice while promoting a sustainable energy future. Besides, the electric industry expects increased demand due to new manufacturing, industrial, and data center facilities. NRG's experience, especially in the Texas power market, positions it well for significant growth opportunities in generation, load management, and consumer product development.
However, on May 7, the company released its Q1 earnings report, and the market reacted poorly, sending the stock down 5.8%. The drop was primarily due to a $243 million decline in quarterly free cash flow before growth (FCFbG), attributed to the timing of annual incentive payments, interest payments related to Vivint, and a seasonal inventory build for the summer. Nonetheless, the stock quickly rebounded more than 13% in the following three trading sessions.
Analysts’ consensus take on NRG stock is cautiously bullish, with a “Moderate Buy” rating overall. Out of eight analysts covering the stock, four advise a “Strong Buy” rating, and the remaining four analysts recommend a “Hold” rating.
The average analyst price target for NRG is $83.62, indicating a potential upswing of 12.7% from the prevailing market price.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
