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NRG Energy Inc. (NYSE: NRG) reported its financial results for 2020 on Monday that fell shy of analysts’ estimates for earnings and revenue. The company attributed its dovish performance to the ongoing Coronavirus pandemic that has so far infected more than 29 million people in the United States and caused over half a million deaths.

NRG Energy shares were reported about 15% up in premarket trading on Monday and jumped another 1.5% on market open. Including the price action, the stock is now trading at £30.62 per share after recovering from a low of £15.75 per share in March 2020.

NRG Energy’s 2020 financial results versus analysts’ estimates

NRG Energy said that its full-year per-share earnings on GAAP basis came in at £1.48 per share. Experts, on the other hand, had called for a much higher £2.50 per share of earnings for the U.S. firm in the recently concluded year.

At £6.52 billion, the energy company saw a 7.4% decline in its revenue on a year over year basis. In comparison, analysts were expecting a higher £6.83 billion of full-year revenue for NRG Energy.

On an adjusted basis, the Houston-based company said that its annual earnings before interests, taxes, depreciation, and amortisation (EBITDA) stood at £1.43 billion. NRG Energy valued its cash from continuing operations at £1.29 billion, and free cash flow before growth at £1.08 billion on Monday.

In separate news from the United States, pharmaceutical company, Perrigo plc said on Monday that it will sell its generic drugs business for £1.11 billion.

NRG Energy’s guidance for 2021

For 2021, NRG Energy forecasts its adjusted EBITDA to fall in the range of £1.72 billion to £1.87 billion. It expects up to £1.31 billion of adjusted cash from operations this year. CEO Mauricio Gutierrez commented on the earnings report on Monday and said:

“We continue to advance our customer-focused strategy with the completion of the Direct Energy acquisition and today’s announced sale of 4.9 GW non-core fossil generating assets. Our integrated platform performed well in 2020 and continued to perform through unprecedented conditions, further validating our business.”

NRG Energy remained almost flat on average in the stock market last year with an annual decline of under 2%. At the time of writing, the large American energy company is valued at £7.47 billion and has a price to earnings ratio of 2.64.

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