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NRG Energy Slashes FY 2013 Guidance, Shares Slip (NRG)

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NRG Energy Inc. (NYSE: NRG) reported on Friday that its profit fell sharply in the fiscal second quarter as higher operating expenses put pressure on the bottom line.

Although adjusted earnings and revenue for the fiscal second quarter topped street’s expectations, the guidance for the fiscal 2013 disappointed investors.

Shares fell 2.04% to $26.35 in regular trading hours on Friday.

For the fiscal second quarter, NRG posted net income of $130 million or 39 cents a share down from a profit of $251 million or $1.08 a share, in the year-earlier quarter. In the latest period, the Company took a charge of $21 million linked to debt extinguishment.

Operating revenue jumped 35% to $2.93 billion.

Analysts polled by Thomson Reuters anticipated earnings of 23 cents a share on revenue of $2.29 billion.

Operating margin contracted to 10.1% from 18.3% in the fiscal second quarter while operating costs and other expenses rose 49% to $2.63 billion.

For the fiscal 2013, NRG Energy now anticipates EBITDA (earnings before interest, tax, depreciation and amortization) in the range of $2.55 billion to $2.7 billion down from initial guidance of $2.615 billion to $2.815 billion. However, the Company reaffirmed its adjusted EBITDA guidance for 2014, which is expected in the range of $2.85 billion to $3.05 billion.

Earlier on Wednesday, NRG completed the acquisition of a cogeneration plant in Texas in a cash deal valued at nearly $244 million. The move will allow NRG to gain traction in the Gulf Coast region, which the company believes has strong growth potential.

 








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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