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    NRG Energy Bullish Despite Weak 2010 Results

    Fri, 02/25/2011 - 04:26 EDT - Seeking Alpha
    • Charlie Anderson
    • NRG

    Charlie Anderson submits:NRG Energy had a mediocre 2010 by every generally accepted accounting metric. Revenue and earnings dropped on a 10% decline in net margin (see earnings results here and earnings call transcript here). A major reason for this was pricing pressures created by collapsed natural gas prices. Despite very unexciting 2010 results, NRG Energy is still a good investment based on the thesis article I wrote here. There is a silver lining to the bad 2010 results. Revenue was down a little over a percent and earnings dropped a jaw-dropping 50%. As a point of comparison, Exelon's (EXC) revenue was up 7.5% over 2009, and earnings were down 5%. The major driver of this huge earnings drop at NRG was a billion dollar rise in cost of sales despite flat revenue. This can be attributed to the integration of acquisitions among other factors. Now back to that elusive silver lining. NRGComplete Story »

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