Clearway Energy (NYSE:CWEN) Releases Earnings Results, Beats Expectations By $0.64 EPS

Clearway Energy (NYSE:CWEN) posted its earnings results on Wednesday. The company reported $1.00 earnings per share for the quarter, topping analysts’ consensus estimates of $0.36 by $0.64, FiscalAI reports. Clearway Energy had a return on equity of 0.04% and a net margin of 0.13%.The company had revenue of $481.00 million during the quarter, compared to the consensus estimate of $473.92 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 down $0.61 during midday trading on Wednesday, hitting $31.12. 1,351,679 shares of the company traded hands, compared to its average volume of 1,133,513. The stock has a market cap of $6.39 billion, a price-to-earnings ratio of 778.12 and a beta of 0.89. The company has a debt-to-equity ratio of 1.55, a quick ratio of 1.02 and a current ratio of 1.11. The firm’s fifty day moving average price is $35.58 and its 200-day moving average price is $37.49. Clearway Energy has a 12 month low of $27.67 and a 12 month high of $41.74.

Institutional Trading of Clearway Energy

A number of hedge funds have recently added to or reduced their stakes in CWEN. Wellington Management Group LLP acquired a new position in shares of Clearway Energy during the fourth quarter worth $21,906,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Clearway Energy by 1.2% during the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 435,054 shares of the company’s stock valued at $12,290,000 after acquiring an additional 5,142 shares in the last quarter. Victory Capital Management Inc. boosted its holdings in shares of Clearway Energy by 19.0% during the 3rd quarter. Victory Capital Management Inc. now owns 327,638 shares of the company’s stock valued at $9,256,000 after acquiring an additional 52,338 shares in the last quarter. Guggenheim Capital LLC grew its position in Clearway Energy by 19.8% during the 4th quarter. Guggenheim Capital LLC now owns 196,788 shares of the company’s stock worth $6,545,000 after acquiring an additional 32,571 shares during the last quarter. Finally, BROOKFIELD Corp ON grew its position in Clearway Energy by 11.2% during the 2nd quarter. BROOKFIELD Corp ON now owns 181,032 shares of the company’s stock worth $5,793,000 after acquiring an additional 18,298 shares during the last quarter. Institutional investors and hedge funds own 84.53% of the company’s stock.

Analysts Set New Price Targets

Several analysts have weighed in on CWEN shares. Weiss Ratings cut shares of Clearway Energy from a “hold (c)” rating to a “hold (c-)” rating in a research note on Monday, May 11th. UBS Group increased their target price on shares of Clearway Energy from $44.00 to $45.00 and gave the stock a “buy” rating in a research report on Wednesday, June 24th. Wall Street Zen cut shares of Clearway Energy from a “sell” rating to a “strong sell” rating in a report on Saturday. Morgan Stanley lifted their price target on shares of Clearway Energy from $56.00 to $60.00 and gave the company an “overweight” rating in a research report on Wednesday, May 27th. Finally, Zacks Research cut Clearway Energy from a “hold” rating to a “strong sell” rating in a research note on Friday, July 10th. Two research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Clearway Energy presently has a consensus rating of “Moderate Buy” and a consensus target price 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.