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CenterPoint (CNP) Up 0.2% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for CenterPoint Energy (CNP - Free Report) . Shares have added about 0.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is CenterPoint due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
CenterPoint Energy's Q1 Earnings Top, Revenues Down Y/Y
CenterPoint Energy reported first-quarter 2024 adjusted earnings of 55 cents per share, which surpassed the Zacks Consensus Estimate of 51 cents by 7.8%. The bottom line improved 10% from the year-ago quarter’s figure of 50 cents per share.
The year-over-year improvement can be attributed to regulatory recovery and favorable weather impacts.
The company registered GAAP earnings of 55 cents per share, which increased 12.2% from the prior-year quarter’s figure of 49 cents per share.
Q1 Revenues
CNP generated revenues of $2.62 billion, which missed the Zacks Consensus Estimate of $2.82 billion by 7%. The top line also came in 5.7% lower than the year-ago quarter’s reported figure of $2.78 billion.
Operational Results
In the first quarter of 2024, total expenses decreased 10.5% year over year to $2 billion.
The company reported an operating income of $616 million during the first quarter of 2024 compared with $541 million a year ago.
Interest expenses and other finance charges totaled $198 million, up 33.8% from $148 million recorded in the previous year.
Financial Condition
As of Mar 31, 2024, CenterPoint Energy had cash and cash equivalents of $161 million compared with $90 million as of Dec 31, 2023.
The total long-term debt was $18.12 billion as of Mar 31, 2024 compared with $17.56 billion as of Dec 31, 2023.
Net cash flow from operating activities amounted to $0.54 billion as of Mar 31, 2024 compared with $1.71 billion in the year-ago period.
The total capital expenditure was $0.85 million as of Mar 31, 2024 compared with $1.12 billion a year ago.
2024 Guidance
CenterPoint Energy reiterated its 2024 earnings guidance. It continues to expect to generate adjusted earnings per share in the range of $1.61-$1.63. The Zacks Consensus Estimate for 2024 earnings is pegged at $1.62 per share, which is in line with the midpoint of the company’s guided range.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, CenterPoint has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, CenterPoint has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
CenterPoint belongs to the Zacks Utility - Electric Power industry. Another stock from the same industry, PG&E (PCG - Free Report) , has gained 4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2024.
PG&E reported revenues of $5.86 billion in the last reported quarter, representing a year-over-year change of -5.6%. EPS of $0.37 for the same period compares with $0.29 a year ago.
PG&E is expected to post earnings of $0.30 per share for the current quarter, representing a year-over-year change of +30.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for PG&E. Also, the stock has a VGM Score of C.
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CenterPoint (CNP) Up 0.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for CenterPoint Energy (CNP - Free Report) . Shares have added about 0.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is CenterPoint due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
CenterPoint Energy's Q1 Earnings Top, Revenues Down Y/Y
CenterPoint Energy reported first-quarter 2024 adjusted earnings of 55 cents per share, which surpassed the Zacks Consensus Estimate of 51 cents by 7.8%. The bottom line improved 10% from the year-ago quarter’s figure of 50 cents per share.
The year-over-year improvement can be attributed to regulatory recovery and favorable weather impacts.
The company registered GAAP earnings of 55 cents per share, which increased 12.2% from the prior-year quarter’s figure of 49 cents per share.
Q1 Revenues
CNP generated revenues of $2.62 billion, which missed the Zacks Consensus Estimate of $2.82 billion by 7%. The top line also came in 5.7% lower than the year-ago quarter’s reported figure of $2.78 billion.
Operational Results
In the first quarter of 2024, total expenses decreased 10.5% year over year to $2 billion.
The company reported an operating income of $616 million during the first quarter of 2024 compared with $541 million a year ago.
Interest expenses and other finance charges totaled $198 million, up 33.8% from $148 million recorded in the previous year.
Financial Condition
As of Mar 31, 2024, CenterPoint Energy had cash and cash equivalents of $161 million compared with $90 million as of Dec 31, 2023.
The total long-term debt was $18.12 billion as of Mar 31, 2024 compared with $17.56 billion as of Dec 31, 2023.
Net cash flow from operating activities amounted to $0.54 billion as of Mar 31, 2024 compared with $1.71 billion in the year-ago period.
The total capital expenditure was $0.85 million as of Mar 31, 2024 compared with $1.12 billion a year ago.
2024 Guidance
CenterPoint Energy reiterated its 2024 earnings guidance. It continues to expect to generate adjusted earnings per share in the range of $1.61-$1.63. The Zacks Consensus Estimate for 2024 earnings is pegged at $1.62 per share, which is in line with the midpoint of the company’s guided range.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, CenterPoint has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, CenterPoint has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
CenterPoint belongs to the Zacks Utility - Electric Power industry. Another stock from the same industry, PG&E (PCG - Free Report) , has gained 4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2024.
PG&E reported revenues of $5.86 billion in the last reported quarter, representing a year-over-year change of -5.6%. EPS of $0.37 for the same period compares with $0.29 a year ago.
PG&E is expected to post earnings of $0.30 per share for the current quarter, representing a year-over-year change of +30.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for PG&E. Also, the stock has a VGM Score of C.