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CenterPoint Energy (CNP) to Post Q2 Earnings: What's in Store?

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CenterPoint Energy, Inc. (CNP - Free Report) is slated to report second-quarter 2024 results on Jul 30 before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 7.84%.

The company holds a four-quarter average earnings surprise of 3.13%.  Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors to Note

The majority of the company’s service territories experienced warmer-than-normal temperature patterns for most of the second quarter. Such a weather pattern is expected to have boosted electricity demand for cooling purposes. This, in turn, might have contributed to CenterPoint Energy’s second-quarter revenues.

CenterPoint Energy, Inc. Price and EPS Surprise

CenterPoint Energy, Inc. Price and EPS Surprise

CenterPoint Energy, Inc. price-eps-surprise | CenterPoint Energy, Inc. Quote

Adverse weather patterns, including a few flash floods, affected some parts of CNP’s service territories during the second quarter, which may have disrupted the company’s services in those areas. This is likely to have resulted in outages for some of its customers, impacting its overall revenues.

The Zacks Consensus Estimate for CenterPoint Energy’s second-quarter revenues is pegged at $1.87 billion, which indicates a 0.1% decline from the prior-year quarter’s recorded figure.

The severe weather conditions mentioned above may have damaged some of the company’s properties, thereby increasing its quarterly restoration costs. This, in turn, is likely to have hurt CNP’s second-quarter earnings.

Moreover, higher interest expenses may have an adverse impact on the company’s bottom-line performance.

Nevertheless, profitable returns from its earlier investments, as well as the company’s initiatives to reduce Operations and Maintenance (O&M) costs, may have boosted CenterPoint Energy’s overall earnings.

The Zacks Consensus Estimate for second-quarter earnings is pegged at 33 cents per share, which implies a 17.9% improvement from the prior-year quarter’s level.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for CenterPoint Energy this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.

Earnings ESP: CNP has an Earnings ESP of -2.26%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, CenterPoint Energy carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Below, we have mentioned the following players from the same industry that have the right combination of elements to beat on earnings in the upcoming releases.

Xcel Energy Inc. (XEL - Free Report) is slated to report its second-quarter 2024 results on Aug 1 before market open. It has an Earnings ESP of +2.77% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for XEL’s second-quarter earnings stands at 51 cents per share. The Zacks Consensus Estimate for XEL Energy’s second-quarter sales is pegged at $3.23 billion, which implies a 6.8% increase from that reported in the prior-year quarter.

The AES Corporation (AES - Free Report) is expected to report its second-quarter 2024 results on Aug 1 after market close. It has an Earnings ESP of +10.20% and carries a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for AES’ second-quarter earnings stands at 33 cents per share, which suggests a 57.1% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for second-quarter sales is pegged at $3.08 billion, which implies a 1.7% increase from that reported in the prior-year quarter.

The Southern Company (SO - Free Report) is slated to report its second-quarter 2024 results on Aug 1 before market open. It has an Earnings ESP of +0.38% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for SO’s second-quarter earnings stands at 91 cents per share, which suggests a 15.2% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for second-quarter sales is pegged at $6.26 billion, which implies a 9% increase from that reported in the prior-year quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 

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