In recently updated financial guidance, the company increased its EBITDA and free cash flow projections amid a revised outlook on commodity prices, review of expenses and revisions to the impact of projected capital expenditures.
“…NRG is reaffirming 2013 adjusted EBITDA guidance, increasing its 2014 adjusted EBITDA guidance by $70 million and increasing both 2013 and 2014 Free Cash Flow before Growth guidance by $75 million and $55 million, respectively.” (Source: NRG Energy press release)
NRG Energy, which pays a current quarterly dividend of $0.09 per share, is trading close to its 52-week high. The company doesn’t report its 4Q earnings until the end of this month but based on the tone of the guidance management seems eager to communicate its performance.
Competitive Solar
Meanwhile, Tempe, AZ-based First Solar, Inc. (NASDAQ:FSLR) is not only the world’s largest thin-film solar module maker — it is also the most competitive. After purchasing a 50-megawatt solar farm from Element Power Solar in January, the company appears to be selling the electricity produced at the plant at a discount. First Solar is reportedly selling the power to El Paso Electric in New Mexico for about half of what coal-producers are charging per kilowatt hour, according to a recent Bloomberg article. It is unclear whether First Solar will be offsetting lower rates with any state or federal incentives.
Estimates for First Solar’s sales and earnings in 2013 aren’t very ambitious as analysts expect flat revenues and a 12% drop in revenues, the WSJ indicates. The company’s sales and net income both declined in the 3Q amid restructuring charges coupled with lower production although First Solar is profitable and is looking toward long-term growth and value creation, the company indicated. The stock is trading approximately 43% below its 52 week high.
San Jose, Calif.-based SunPower Corporation (NASDAQ:SPWR) is making it easier and cheaper for U.S. homeowners to install solar panels on their roofs. The company partnered with U.S. Bancorp to offer expanded financing options worth $100 million for up to 3,000 individual homes. The project is meant to make solar power more accessible to residents and it expands leasing options across nine U.S. states from Hawaii to Vermont.
SunPower announced a corporate restructuring in October and as a result expects to take mostly-cash charges worth as much as $40 million when the company reports 4Q earnings on February 7th.
The power outage at the Superbowl certainly produced a memorable experience but not one that anyone wants to see repeated. Although the stadium was equipped with LED lights that are touted for being environmentally friendly, the argument for solar just got a little bit stronger in New Orleans.
The article Will Solar Ever Shine? originally appeared on Fool.com and is written by Gerelyn Terzo.
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