Clearway Energy (NYSE:CWEN) Posts Earnings Results, Beats Estimates By $0.76 EPS

Clearway Energy (NYSE:CWEN) posted its earnings results on Wednesday. The company reported $1.00 EPS for the quarter, topping the consensus estimate of $0.24 by $0.76, FiscalAI reports. Clearway Energy had a net margin of 5.78% and a return on equity of 1.60%. The company had revenue of $481.00 million during the quarter, compared to the consensus estimate of $480.80 million.

Here are the key takeaways from Clearway Energy’s conference call:

• 2026 CAFD guidance was reduced to $430 million-$470 million from $470 million-$510 million, primarily due to weaker-than-expected wind and renewable resources in the first half. Management characterized the impact as weather-related and reiterated that the fleet’s underlying earnings power remains intact.
• Clearway reaffirmed its 2027 CAFD per-share target of $2.70 or better and said it remains confident in achieving the top end or better of its 2030 goals, supported by more than $2 billion of identified growth opportunities for 2027-2029.
• Fleet enhancements advanced with long-term PPAs completed for three ERCOT wind projects totaling more than 600 megawatts, extending contracted tenors beyond 2040 and increasing project cash flow visibility. The company also remains on track to invest approximately $600 million in repowering at targeted 11%-12% CAFD yields.
• Clearway highlighted substantial longer-term upside from its digital infrastructure strategy, including more than 17 gigawatts of co-located generation under development and potential initial generation phases targeted for 2029. These projects are not yet incorporated into the company’s core targets, providing potential incremental growth.
• The company expects to fund approximately $3 billion of corporate investment through 2029 using retained cash flow, more than $1.5 billion of corporate debt and $500 million-$1 billion of external equity, while maintaining a 4.0-4.5x leverage target and a BB credit rating. Management said equity issuance will be limited to situations where it is demonstrably accretive.

Clearway Energy Price Performance

Shares of Clearway Energy stock traded up $0.10 during trading on Friday, hitting $32.95. The stock had a trading volume of 529,085 shares, compared to its average volume of 1,133,996. The company has a current ratio of 1.11, a quick ratio of 1.02 and a debt-to-equity ratio of 1.55. Clearway Energy has a 12 month low of $27.67 and a 12 month high of $41.74. The firm has a market cap of $6.76 billion, a price-to-earnings ratio of 43.32 and a beta of 0.89. The business’s 50-day moving average is $35.24 and its 200 day moving average is $37.44.

Clearway Energy Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be issued a $0.475 dividend. This represents a $1.90 annualized dividend and a yield of 5.8%. The ex-dividend date of this dividend is Tuesday, September 1st. This is a positive change from Clearway Energy’s previous quarterly dividend of $0.47. Clearway Energy’s payout ratio is 4,675.00%.

Hedge Funds Weigh In On Clearway Energy

Several institutional investors have recently modified their holdings of the company. Caitong International Asset Management Co. Ltd increased its holdings in shares of Clearway Energy by 280.9% in the third quarter. Caitong International Asset Management Co. Ltd now owns 956 shares of the company’s stock worth $27,000 after buying an additional 705 shares during the period. National Bank of Canada FI grew its position in Clearway Energy by 201.9% during the 3rd quarter. National Bank of Canada FI now owns 975 shares of the company’s stock worth $28,000 after acquiring an additional 652 shares during the last quarter. Headlands Technologies LLC purchased a new position in Clearway Energy in the 2nd quarter worth approximately $43,000. Johnson Financial Group Inc. bought a new stake in Clearway Energy in the third quarter valued at approximately $52,000. Finally, Scarborough Advisors LLC boosted its stake in shares of Clearway Energy by 84.6% during the fourth quarter. Scarborough Advisors LLC now owns 1,661 shares of the company’s stock valued at $55,000 after purchasing an additional 761 shares during the period. 84.53% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

CWEN has been the topic of several recent analyst reports. Zacks Research cut Clearway Energy from a “hold” rating to a “strong sell” rating in a research note on Friday, July 10th. Truist Financial began coverage on shares of Clearway Energy in a report on Monday, July 13th. They set a “buy” rating and a $43.00 price target on the stock. Deutsche Bank Aktiengesellschaft set a $41.00 price objective on shares of Clearway Energy in a research note on Thursday, April 9th. Canadian Imperial Bank of Commerce set a $42.00 target price on Clearway Energy in a report on Friday, July 17th. Finally, Morgan Stanley increased their price target on Clearway Energy from $56.00 to $60.00 and gave the company an “overweight” rating in a research report on Wednesday, May 27th. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $44.00.

About Clearway Energy

Clearway Energy Group (NYSE: CWEN) is a U.S.-based energy company specializing in the ownership, operation and development of clean and conventional power generation assets. The company’s portfolio spans utility-scale wind and solar farms, biogas and natural gas-fired thermal facilities, as well as distributed generation projects such as rooftop solar and energy storage. Clearway’s generation assets are largely underpinned by long-term power purchase agreements and service contracts with creditworthy counterparties, enabling stable, predictable cash flows.

Originally launched in 2013 as NRG Yield and rebranded to Clearway Energy in 2018 following a strategic sponsorship change, the business has grown into one of the largest independent renewable energy platforms in the United States.