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What's in Store for CenterPoint Energy (CNP) in Q4 Earnings?
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CenterPoint Energy, Inc. (CNP - Free Report) is slated to report fourth-quarter and full-year 2023 results on Feb 20, before the opening bell.
CNP delivered a trailing four-quarter average earnings surprise of 1.35%.
Factors to Note
For majority of the fourth quarter, CenterPoint Energy’s service territories witnessed a warmer-than-normal weather pattern, with a few regions recording their highest maximum temperature during November. Such a weather pattern is expected to have boosted electricity demand for cooling purposes. This might have contributed to CenterPoint Energy’s top-line performance in the to-be-reported quarter.
Moreover, favorable rate hikes, demand peaks and organic customer growth observed in the prior quarters are likely to have boosted the company’s revenues.
However, an adverse weather pattern, including multiple tornados along with hails, affected an extensive part of CNP’s service territories during the fourth quarter. This might have disrupted the company’s services in those areas, partly affecting CNP’s overall revenues.
The Zacks Consensus Estimate for CenterPoint Energy’s fourth-quarter revenues is pegged at $2.76 billion, indicating a 1.8% increase from the prior-year quarter’s recorded figure.
The severe weather conditions, as mentioned above, might have caused some structural damage to the company, thereby increasing its quarterly restoration costs. This is likely to have hurt CNP’s fourth-quarter earnings. Moreover, higher interest rate expenses and inflationary pressures might have had an adverse impact on the company’s earnings.
Nevertheless, the company’s ongoing efforts to reduce Operation & Maintenance costs and the rising electricity demand might have outweighed the aforementioned impacts on CenterPoint Energy’s overall bottom-line performance.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 32 cents per share, implying a 14.3% year-over-year improvement.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for CenterPoint Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is -0.78%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are three Utility players that have the right combination of elements to come up with an earnings beat this reporting cycle.
Sempra Energy (SRE - Free Report) has an Earnings ESP of +1.18% and a Zacks Rank #3 at present. The company delivered a four-quarter average earnings surprise of 9.03%.
The Zacks Consensus Estimate for SRE’s fourth-quarter sales is pegged at $4.03 billion, indicating growth of 16.7% from that recorded in the prior-year quarter. The consensus mark for earnings stands at $1.13 per share.
Southwest Gas (SWX - Free Report) has an Earnings ESP of +1.45% and a Zacks Rank #3 at present. The company delivered a four-quarter average earnings surprise of 104%.
The Zacks Consensus Estimate for SWX’s fourth-quarter sales stands at $1.27 billion. The company has a long-term (three-to-five-years) earnings growth rate of 5%.
ONE Gas (OGS - Free Report) has an Earnings ESP of +0.53% and a Zacks Rank #3 at present. The company delivered a four-quarter average earnings surprise of 1.85%.
The Zacks Consensus Estimate for OGS’ fourth-quarter earnings stands at $1.26 per share, indicating growth of 2.4% from that recorded in the prior-year quarter. The consensus mark for sales stands at $815.6 million.
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What's in Store for CenterPoint Energy (CNP) in Q4 Earnings?
CenterPoint Energy, Inc. (CNP - Free Report) is slated to report fourth-quarter and full-year 2023 results on Feb 20, before the opening bell.
CNP delivered a trailing four-quarter average earnings surprise of 1.35%.
Factors to Note
For majority of the fourth quarter, CenterPoint Energy’s service territories witnessed a warmer-than-normal weather pattern, with a few regions recording their highest maximum temperature during November. Such a weather pattern is expected to have boosted electricity demand for cooling purposes. This might have contributed to CenterPoint Energy’s top-line performance in the to-be-reported quarter.
CenterPoint Energy, Inc. Price and EPS Surprise
CenterPoint Energy, Inc. price-eps-surprise | CenterPoint Energy, Inc. Quote
Moreover, favorable rate hikes, demand peaks and organic customer growth observed in the prior quarters are likely to have boosted the company’s revenues.
However, an adverse weather pattern, including multiple tornados along with hails, affected an extensive part of CNP’s service territories during the fourth quarter. This might have disrupted the company’s services in those areas, partly affecting CNP’s overall revenues.
The Zacks Consensus Estimate for CenterPoint Energy’s fourth-quarter revenues is pegged at $2.76 billion, indicating a 1.8% increase from the prior-year quarter’s recorded figure.
The severe weather conditions, as mentioned above, might have caused some structural damage to the company, thereby increasing its quarterly restoration costs. This is likely to have hurt CNP’s fourth-quarter earnings. Moreover, higher interest rate expenses and inflationary pressures might have had an adverse impact on the company’s earnings.
Nevertheless, the company’s ongoing efforts to reduce Operation & Maintenance costs and the rising electricity demand might have outweighed the aforementioned impacts on CenterPoint Energy’s overall bottom-line performance.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 32 cents per share, implying a 14.3% year-over-year improvement.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for CenterPoint Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is -0.78%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CNP carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are three Utility players that have the right combination of elements to come up with an earnings beat this reporting cycle.
Sempra Energy (SRE - Free Report) has an Earnings ESP of +1.18% and a Zacks Rank #3 at present. The company delivered a four-quarter average earnings surprise of 9.03%.
The Zacks Consensus Estimate for SRE’s fourth-quarter sales is pegged at $4.03 billion, indicating growth of 16.7% from that recorded in the prior-year quarter. The consensus mark for earnings stands at $1.13 per share.
Southwest Gas (SWX - Free Report) has an Earnings ESP of +1.45% and a Zacks Rank #3 at present. The company delivered a four-quarter average earnings surprise of 104%.
The Zacks Consensus Estimate for SWX’s fourth-quarter sales stands at $1.27 billion. The company has a long-term (three-to-five-years) earnings growth rate of 5%.
ONE Gas (OGS - Free Report) has an Earnings ESP of +0.53% and a Zacks Rank #3 at present. The company delivered a four-quarter average earnings surprise of 1.85%.
The Zacks Consensus Estimate for OGS’ fourth-quarter earnings stands at $1.26 per share, indicating growth of 2.4% from that recorded in the prior-year quarter. The consensus mark for sales stands at $815.6 million.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.