Monday, July 15, 2013

Will NRG Energy Beat These Analyst Estimates?

NRG Energy (NYSE: NRG  ) is expected to report Q2 earnings around July 19. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict NRG Energy's revenues will grow 33.2% and EPS will shrink -72.2%.

The average estimate for revenue is $2.89 billion. On the bottom line, the average EPS estimate is $0.30.

Revenue details
Last quarter, NRG Energy recorded revenue of $2.08 billion. GAAP reported sales were 12% higher than the prior-year quarter's $1.86 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at -$0.89. GAAP EPS were -$1.02 for Q1 compared to -$0.92 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 15.2%, 20 basis points better than the prior-year quarter. Operating margin was -10.9%, 280 basis points worse than the prior-year quarter. Net margin was -15.8%, 470 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $12.45 billion. The average EPS estimate is $1.07.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 696 members out of 714 rating the stock outperform, and 18 members rating it underperform. Among 180 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 178 give NRG Energy a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NRG Energy is outperform, with an average price target of $27.64.

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