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CenterPoint Energy (CNP) Tops Q3 Earnings, Updates View

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CenterPoint Energy, Inc. (CNP - Free Report) reported third-quarter 2016 earnings of 41 cents per share, beating the Zacks Consensus Estimate of 37 cents by 10.8%. The reported number was also 20.6% higher than the prior-year figure of 34 cents.

GAAP earnings in the reported quarter were 41 cents. In the year-ago quarter, the company had incurred a GAAP loss of 91 cents.
 
Revenues

CenterPoint Energy’s total revenue in the reported quarter was $1,889 million, missing the Zacks Consensus Estimate of $1,718 million by 10%. Revenues were, however, 15.9% higher than $1,630 million reported a year ago.

The increase in the top line was mainly due to higher contribution from Electric Transmission & Distribution, Natural Gas Distribution and Energy Services, offset marginally by lower contribution from Other Operations.
 

Operational Results

Total expenses increased 17.6% to $1,605 million.

The company’s operating income increased 7.2% to $284 million from $265 million in the year-ago quarter.

Interest and other finance charges decreased to $83 million in the reported quarter from $88 million a year ago.

Segment Results

The Electric Transmission & Distribution segment reported operating income of $257 million, compared with $244 million in the year-ago quarter.

Natural Gas Distribution reported operating income of $22 million, compared with $11 million in the year-ago quarter.

The Energy Services segment reported operating income of $5 million, compared with $7 million in the year-ago quarter.

CENTERPOINT EGY Price, Consensus and EPS Surprise

 

CENTERPOINT EGY Price, Consensus and EPS Surprise | CENTERPOINT EGY Quote

Financial Condition

As of Sep 30, 2016, CenterPoint Energy had cash and cash equivalents of $270 million, up from $264 million as of Dec 31, 2015.

Total long-term debt was $7,736 million as of Sep 30, 2016, down from $7,866 million as of Dec 31, 2015.

In the first nine months of 2016, the company’s net cash from operating activities was $1,452 million, down from $1,518 million in the year-ago period.

In the reported quarter, CenterPoint Energy’s total capital expenditure was $361 million, down from $424 million in the year-ago quarter.

Guidance

CenterPoint Energy raised the low end of its 2016 earnings guidance to the range of $1.16–$1.20 per diluted share from the prior expectation of $1.12–$1.20.
                              
Peer Releases

DTE Energy Company (DTE - Free Report) reported third-quarter 2016 operating earnings per share of $1.96, beating the Zacks Consensus Estimate of $1.54 by 27.3%. Reported earnings were also up 40% from the year-ago tally of $1.40.

Entergy Corporation (ETR - Free Report) reported third-quarter 2016 operating earnings of $2.31 per share, beating the Zacks Consensus Estimate of $1.95 by 18.5%. The reported number also improved 21.6% from $1.90 earned a year ago.

CMS Energy Corporation (CMS - Free Report) reported third-quarter 2016 adjusted earnings per share of 70 cents, beating the Zacks Consensus Estimate of 60 cents by 16.7%. Quarterly earnings also surged 32.1% from the year-ago figure of 53 cents.

Zacks Rank

CenterPoint Energy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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