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What's in Store for CenterPoint Energy (CNP) in Q1 Earnings?
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CenterPoint Energy, Inc. (CNP - Free Report) is slated to report first-quarter 2024 results on Apr 30, before the opening bell.
In the last reported quarter, the company’s earnings came in line with the Zacks Consensus Estimate. CNP delivered a trailing four-quarter average earnings surprise of 2.21%.
Factors to Note
During the first quarter, CenterPoint Energy’s service territories witnessed a mixed weather pattern. While colder-than-normal temperatures, accompanied with precipitation and snowfall, prevailed in the month of January, a warmer-than-normal temperature was witnessed in the months of February and March.
While colder temperatures in winter months must have boosted electricity demand from CNP’s customers for heating purposes, warmer winters for the latter part of the January-March quarter might have reduced the same. So, temperature can be expected to have contributed moderately to CenterPoint Energy’s top-line performance in the first quarter.
Adverse weather events, like a strong winter storm and widespread flood, along with a deadly wildfire, affected some major parts of CNP’s service territories during the first quarter. This might have disrupted the company’s services in those areas, partly affecting CNP’s overall revenues.
Nevertheless, favorable rate hikes, particularly the interim rates for its Minnesota Gas business, which came into effect from January 2024, and organic customer growth are likely to have boosted the company’s revenues.
The Zacks Consensus Estimate for CenterPoint Energy’s first-quarter revenues is pegged at $2.81 billion, indicating a 1.1% increase from the prior-year quarter’s recorded figure.
The severe weather conditions (as mentioned above), along with the wildfire (the largest one in the history of Texas), might have caused some structural damage to the company’s infrastructure, thereby increasing its quarterly restoration costs. This is likely to have hurt CNP’s first-quarter earnings. Moreover, higher interest rate expenses might have had an adverse impact on the company’s bottom-line performance.
Nevertheless, the positive sales growth expectation and profitable returns from its earlier investments might have boosted CenterPoint Energy’s overall earnings.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 51 cents per share, implying a 2% improvement from the prior-year quarter’s level.
In February 2024, CNP completed the sale of its Louisiana and Mississippi natural gas LDC businesses to Bernhard Capital Partners, for $1.2 billion. We may expect the sale proceeds from this transaction to be reflected in the company’s cash flow once it releases its first-quarter results.
What the Zacks Model Unveils
Our proven model predicts 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. This is the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is +3.92%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are two other Utility players that have the right combination of elements to come up with an earnings beat this reporting cycle.
Clean Energy Fuels (CLNE - Free Report) has an Earnings ESP of +68.75% and a Zacks Rank #3 at present. The company has a four-quarter average earnings surprise of 4.17%
The Zacks Consensus Estimate for CLNE’s first-quarter earnings is pegged at a loss of 3 cents, indicating an improvement from the prior-year quarter’s reported loss of 7 cents. The consensus estimate for sales is pegged at $106.6 million.
PPL Corp. (PPL - Free Report) has an Earnings ESP of +0.98% and a Zacks Rank #3 at present. The consensus estimate for first-quarter earnings is pinned at 51 cents per share, indicating a 6.3% increase year over year.
PPL delivered a trailing four-quarter average earnings surprise of 0.13%. The consensus mark for first-quarter sales is pegged at $2.48 billion, indicating growth of 2.6% from that recorded in the prior-year quarter.
A Recent Utility Release
NextEra Energy, Inc. (NEE - Free Report) reported first-quarter 2024 adjusted earnings of 91 cents per share, which beat the Zacks Consensus Estimate of 80 cents by 13.8%. The bottom line was also up nearly 8.3% year over year.
In the first quarter, NextEra’s operating revenues totaled $5.73 billion, which lagged the Zacks Consensus Estimate of $6.46 billion by 11.4%. The top line plunged 14.7% year over year.
Image: Bigstock
What's in Store for CenterPoint Energy (CNP) in Q1 Earnings?
CenterPoint Energy, Inc. (CNP - Free Report) is slated to report first-quarter 2024 results on Apr 30, before the opening bell.
In the last reported quarter, the company’s earnings came in line with the Zacks Consensus Estimate. CNP delivered a trailing four-quarter average earnings surprise of 2.21%.
Factors to Note
During the first quarter, CenterPoint Energy’s service territories witnessed a mixed weather pattern. While colder-than-normal temperatures, accompanied with precipitation and snowfall, prevailed in the month of January, a warmer-than-normal temperature was witnessed in the months of February and March.
While colder temperatures in winter months must have boosted electricity demand from CNP’s customers for heating purposes, warmer winters for the latter part of the January-March quarter might have reduced the same. So, temperature can be expected to have contributed moderately to CenterPoint Energy’s top-line performance in the first quarter.
CenterPoint Energy, Inc. Price and EPS Surprise
CenterPoint Energy, Inc. price-eps-surprise | CenterPoint Energy, Inc. Quote
Adverse weather events, like a strong winter storm and widespread flood, along with a deadly wildfire, affected some major parts of CNP’s service territories during the first quarter. This might have disrupted the company’s services in those areas, partly affecting CNP’s overall revenues.
Nevertheless, favorable rate hikes, particularly the interim rates for its Minnesota Gas business, which came into effect from January 2024, and organic customer growth are likely to have boosted the company’s revenues.
The Zacks Consensus Estimate for CenterPoint Energy’s first-quarter revenues is pegged at $2.81 billion, indicating a 1.1% increase from the prior-year quarter’s recorded figure.
The severe weather conditions (as mentioned above), along with the wildfire (the largest one in the history of Texas), might have caused some structural damage to the company’s infrastructure, thereby increasing its quarterly restoration costs. This is likely to have hurt CNP’s first-quarter earnings. Moreover, higher interest rate expenses might have had an adverse impact on the company’s bottom-line performance.
Nevertheless, the positive sales growth expectation and profitable returns from its earlier investments might have boosted CenterPoint Energy’s overall earnings.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 51 cents per share, implying a 2% improvement from the prior-year quarter’s level.
In February 2024, CNP completed the sale of its Louisiana and Mississippi natural gas LDC businesses to Bernhard Capital Partners, for $1.2 billion. We may expect the sale proceeds from this transaction to be reflected in the company’s cash flow once it releases its first-quarter results.
What the Zacks Model Unveils
Our proven model predicts 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. This is the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is +3.92%. 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.
Other Stocks to Consider
Here are two other Utility players that have the right combination of elements to come up with an earnings beat this reporting cycle.
Clean Energy Fuels (CLNE - Free Report) has an Earnings ESP of +68.75% and a Zacks Rank #3 at present. The company has a four-quarter average earnings surprise of 4.17%
The Zacks Consensus Estimate for CLNE’s first-quarter earnings is pegged at a loss of 3 cents, indicating an improvement from the prior-year quarter’s reported loss of 7 cents. The consensus estimate for sales is pegged at $106.6 million.
PPL Corp. (PPL - Free Report) has an Earnings ESP of +0.98% and a Zacks Rank #3 at present. The consensus estimate for first-quarter earnings is pinned at 51 cents per share, indicating a 6.3% increase year over year.
PPL delivered a trailing four-quarter average earnings surprise of 0.13%. The consensus mark for first-quarter sales is pegged at $2.48 billion, indicating growth of 2.6% from that recorded in the prior-year quarter.
A Recent Utility Release
NextEra Energy, Inc. (NEE - Free Report) reported first-quarter 2024 adjusted earnings of 91 cents per share, which beat the Zacks Consensus Estimate of 80 cents by 13.8%. The bottom line was also up nearly 8.3% year over year.
In the first quarter, NextEra’s operating revenues totaled $5.73 billion, which lagged the Zacks Consensus Estimate of $6.46 billion by 11.4%. The top line plunged 14.7% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.