With a market cap of $20.1 billion, NRG Energy, Inc. (NRG) operates as an energy and home services company in the United States and Canada. Founded in 1989 and headquartered in Houston, Texas, the company operates through Texas, East, West/Services/Other, Vivint Smart Home, and Corporate Activities segments.

The company is set to report its Q1 earnings on Tuesday, May 6. Ahead of the event, analysts expect NRG to report an EPS of $0.72 per share, down 10% from $0.80 per share reported in the year-ago quarter. It has exceeded analysts' earnings estimates in two of the past four quarters, while missing in the other two occasions. Its EPS of $1.52 in the recent quarter surpassed the analysts’ expectations by 60%.

For fiscal 2025, analysts expect NRG to report an EPS of $7.28, up 9.6% from $6.64 in fiscal 2024. Moreover, in fiscal 2026, its EPS is expected to grow 19% year over year to $8.66.

Over the past year, NRG shares have surged 42.7%, substantially outperforming the S&P 500 Index’s ($SPX) 6% gains and the Utilities Select Sector SPDR Fund’s (XLU) 18.1% rally over the same time frame.

NRG shares surged 10.6% following the release of its Q4 earnings on Feb. 26. The company reported a 1.3% year-over-year increase in its revenue, which amounted to $6.9 billion. Additionally, the company’s adjusted EBITDA grew 4.8% from the prior year’s quarter to $902 million, driving its EPS to surpass the consensus estimates.

Looking ahead, NRG expects its adjusted EPS to be between $6.75 and $7.75, and projects adjusted EBITDA in the range of $3.7 billion to $4 billion for fiscal 2025.

Moreover, analysts remain moderately bullish about NRG stock’s future prospects, with a "Moderate Buy" rating overall. Among 10 analysts covering the stock, seven recommend a “Strong Buy” and three recommend a “Hold.” NRG’s mean price of $126.67 implies a premium of 24.1% from its prevailing price level.