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CenterPoint (CNP) Q3 Earnings: What's Ahead for the Stock?
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CenterPoint Energy, Inc. (CNP - Free Report) will release third-quarter 2016 financial results before the market opens on Nov 4. Last quarter, the utility reported a negative earnings surprise of 15.00%. Let’s see how things are shaping up at CenterPoint Energy prior to this announcement.
Factors to Consider
During the second-quarter earnings call, CenterPoint Energy had said that the third quarter usually records the best results in the year in Houston Electric and the trend is expected to continue this year as well.
Moreover, the company said that in the third quarter, it will implement new rates. This rate increase should boost the company’s top line.
The company's service territories witnessed above-average temperatures during the third quarter. This should translate into increased electric sales in these regions, which in turn, will boost the top line.
Moreover, the unemployment rate in CenterPoint Energy’s service territories is marginally better than the national average. An improving economy is likely to boost future utility demand in the state. This will also drive the company’s performance.
Earnings Whispers
Our proven model does not conclusively show that CenterPoint Energy is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.
Zacks ESP: CenterPoint Energy has an Earnings ESP 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 37 cents.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: CenterPoint Energy’s Zacks Rank #3, when combined with a 0.00% ESP, makes surprise prediction difficult.
We note that Sell-rated stocks (#4 or #5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Here are a few operators in the utility space worth considering as our model shows that they have the right combination of elements to post an earnings beat this quarter:
AES Corporation (AES - Free Report) has an Earnings ESP of +3.13% and a Zacks Rank #3. It is expected to report earnings on Nov 4.
Duke Energy Corporation (DUK - Free Report) has an Earnings ESP of +1.28% and a Zacks Rank #3. The company is expected to release third-quarter 2016 earnings on Nov 4.
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CenterPoint (CNP) Q3 Earnings: What's Ahead for the Stock?
CenterPoint Energy, Inc. (CNP - Free Report) will release third-quarter 2016 financial results before the market opens on Nov 4. Last quarter, the utility reported a negative earnings surprise of 15.00%. Let’s see how things are shaping up at CenterPoint Energy prior to this announcement.
Factors to Consider
During the second-quarter earnings call, CenterPoint Energy had said that the third quarter usually records the best results in the year in Houston Electric and the trend is expected to continue this year as well.
Moreover, the company said that in the third quarter, it will implement new rates. This rate increase should boost the company’s top line.
The company's service territories witnessed above-average temperatures during the third quarter. This should translate into increased electric sales in these regions, which in turn, will boost the top line.
Moreover, the unemployment rate in CenterPoint Energy’s service territories is marginally better than the national average. An improving economy is likely to boost future utility demand in the state. This will also drive the company’s performance.
Earnings Whispers
Our proven model does not conclusively show that CenterPoint Energy is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.
Zacks ESP: CenterPoint Energy has an Earnings ESP 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 37 cents.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: CenterPoint Energy’s Zacks Rank #3, when combined with a 0.00% ESP, makes surprise prediction difficult.
We note that Sell-rated stocks (#4 or #5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
CENTERPOINT EGY Price and EPS Surprise
CENTERPOINT EGY Price and EPS Surprise | CENTERPOINT EGY Quote
Stocks to Consider
Here are a few operators in the utility space worth considering as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Pattern Energy Group Inc. is expected to release third-quarter results on Nov 3. The company has an Earnings ESP of +16.67% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
AES Corporation (AES - Free Report) has an Earnings ESP of +3.13% and a Zacks Rank #3. It is expected to report earnings on Nov 4.
Duke Energy Corporation (DUK - Free Report) has an Earnings ESP of +1.28% and a Zacks Rank #3. The company is expected to release third-quarter 2016 earnings on Nov 4.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>