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CenterPoint Energy (CNP) Tops Q2 Earnings, Keeps '17 View

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CenterPoint Energy, Inc. (CNP - Free Report) reported second-quarter 2017 adjusted earnings of 29 cents per share, beating the Zacks Consensus Estimate of 21 cents by 38.1%. Quarterly earnings improved 70.6% from the year-ago figure of 17 cents.

While GAAP earnings in the reported quarter were 31 cents compared with the company’s GAAP loss of a penny in the year-ago quarter.

Revenues

CenterPoint Energy’s total revenue in the reported quarter was $2,143 million, which surpassed the Zacks Consensus Estimate of $1,790.4 million by 19.7%. Revenues were also 36.1% higher than $1,574 million reported a year ago.

The rise in the top line was driven by higher contribution from Natural Gas Distribution and Energy Services segments, offset marginally by lower contribution from Electric Transmission & Distribution segment.

Operational Results

Total expenses during the quarter increased 37.9% to $1,920 million.

The company’s operating income improved 22.5% to $223 million from $182 million in the year-ago quarter.

Interest and other finance charges decreased to $77 million in the reported quarter from $86 million a year ago.

CenterPoint Energy, Inc. Price, Consensus and EPS Surprise

CenterPoint Energy, Inc. Price, Consensus and EPS Surprise | CenterPoint Energy, Inc. Quote

Segment Results

The Electric Transmission & Distribution segment reported operating income of $164 million during the second quarter compared with $158 million in the year-ago quarter.

The Natural Gas Distribution segment reported operating income of $37 million compared with $20 million in the year-ago quarter.

The Energy Services segment reported operating income of $16 million in the second quarter.

Financial Condition

As of Jun 30, 2017, CenterPoint Energy had cash and cash equivalents of $248 million, down from $341 million as of Dec 31, 2016.

Total long-term debt was $7,587 million as of Jun 30, 2017 compared with $7,532 million as of Dec 31, 2016.

At the end of the second quarter, the company’s net cash from operating activities was $680 million, down from $1,061 million in the year-ago period.

Also, CenterPoint Energy’s total capital expenditure was $370 million in the second quarter, up from $358 million in the year-ago quarter.

Guidance

CenterPoint Energy reaffirmed its 2017 earnings guidance in the range of $1.25–$1.33 per diluted share. This earlier included estimated utility operations earnings of 93–97 cents per diluted share and midstream investment earnings of 31–37 cents per diluted share.

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.
                              
Peer Releases

Entergy Corporation (ETR - Free Report) reported second-quarter 2017 operational earnings of $3.11 per share, beating the Zacks Consensus Estimate of $1.20 by 159.2%. However, the reported number was in line with the year-ago figure.

DTE Energy Company (DTE - Free Report) reported second-quarter 2017 operating earnings per share (EPS) of $1.07, which surpassed the Zacks Consensus Estimate of 97 cents by 10.3%. Operating earnings also grew 9.2% from the year-ago figure of 98 cents.

NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2017 adjusted earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.76 by 5.7%. Reported earnings were also up by 11.4% year over year.

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