NRG ENERGY Announces Q2 FY2023 Earnings Results on August 8th
August 10, 2023
☀️Earnings Overview
On August 8 2023, NRG ENERGY ($NYSE:NRG) released their financial report for the second quarter of FY2023 (ending June 30 2023), revealing a decrease of 12.8% in total revenue from the same period in the prior year to USD 6348.0 million. Additionally, net income for the quarter declined by 40.0% compared to the same time last year, totaling USD 308.0 million.
Stock Price
On Tuesday, NRG ENERGY announced its Q2 FY2023 earnings results. The stock opened at $37.4 and closed at $36.8, down 2.0% from its previous closing price of 37.5. NRG Energy said that the increase was driven by lower operating costs as well as higher performance from their power generation plants. In addition, the company announced that it is on track to reach its goal of $1 billion in cost savings and efficiency gains by the end of FY2023. Going forward, the company will continue to focus on improving its operational efficiency and executing on its asset sales plan to generate value for shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Nrg Energy. More…
| Total Revenues | Net Income | Net Margin |
| 30.43k | -2.08k | -6.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Nrg Energy. More…
| Operations | Investing | Financing |
| -3.86k | -2.71k | 2.79k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Nrg Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 28.99k | 25.66k | 14.46 |
Key Ratios Snapshot
Some of the financial key ratios for Nrg Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 47.7% | 19.3% | -6.8% |
| FCF Margin | ROE | ROA |
| -14.5% | -40.5% | -4.5% |
Analysis
GoodWhale has conducted an analysis of NRG ENERGY‘s fundamentals and found that the company has an intermediate health score of 6/10 with regard to its cashflows and debt. This suggests that the company may be able to sustain itself during times of economic crisis. After analyzing all the metrics, we have determined that NRG ENERGY can be classified as ‘rhino’, meaning that it has achieved moderate revenue or earnings growth. Given the company’s strong performance in dividends, medium performance in growth, profitability and weak performance in assets, we believe that NRG ENERGY is an attractive option for value investors looking for a steady return on their investments. Furthermore, given its moderate growth, the company may also be of interest to growth investors who are looking for potential returns in the future. More…
Peers
NRG Energy Inc is an American energy company that is engaged in the production and sale of electricity and natural gas to residential, commercial, and industrial customers in the United States. The company operates through three segments: Electric, Gas, and Renewables. The Electric segment generates and sells electricity to customers in Texas. The Gas segment purchases, transports, and sells natural gas to customers in Texas. The Renewables segment develops, owns, and operates solar, wind, and other renewable energy projects in the United States. NRG Energy Inc has a market capitalization of $11.6 billion and its competitors include Vistra Corp, American Electric Power Co Inc, Sempra Energy.
– Vistra Corp ($NYSE:VST)
Vistra Corp is a electric company based in Irving, Texas. The company operates in three segments: Retail Electricity, Wholesale Electricity, and Corporate and Other. Vistra Corp has a market cap of 8.96B as of 2022 and a Return on Equity of -7.45%. The company has been struggling lately, with its stock price down more than 50% from its 52-week high.
– American Electric Power Co Inc ($NASDAQ:AEP)
American Electric Power Company, Inc. (AEP) is a public utility holding company that engages in the generation, transmission, and distribution of electricity in the United States. The company has a market capitalization of $43.12 billion and a return on equity of 10.57%. AEP is one of the largest electric utilities in the United States, serving over five million customers in 11 states. The company operates through three segments: Transmission & Distribution, Generation & Marketing, and AEP Ohio. Transmission & Distribution is the largest segment, accounting for approximately 60% of AEP’s total revenue.
– Sempra Energy ($NYSE:SRE)
Sempra Energy is a Fortune 500 energy services holding company based in San Diego, California. Sempra Energy’s businesses include Sempra Utilities, Sempra International, Sempra Renewables and Sempra LNG. Sempra Energy has more than 20,000 employees worldwide.
Sempra Energy’s market cap as of 2022 is $43.92B. The company’s ROE is 3.29%. Sempra Energy is a holding company for energy services businesses, including utilities, international energy, renewables, and liquefied natural gas. The company has operations in the United States, Mexico, South America, Europe, and Asia.
Summary
Net income also decreased 40% to $308 million, which was slightly below expectations. It will be important to monitor NRG Energy‘s progress in terms of cost-cutting initiatives and new business developments, such as their acquisition of SunPower, in order to determine the firm’s future performance.
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