Back to top

Image: Bigstock

CenterPoint Energy (CNP) Q1 Earnings Miss, Revenues Up Y/Y

Read MoreHide Full Article

CenterPoint Energy, Inc. (CNP - Free Report) reported first-quarter 2019 adjusted earnings of 46 cents per share, lagging the Zacks Consensus Estimate of 50 cents by 8%. The bottom line also declined 16.4% from the year-ago quarter’s 55 cents.

The company’s GAAP earnings came in at 28 cents per share compared with 38 cents registered in the prior-year quarter.

Revenues

CenterPoint Energy’s total revenues in the quarter were $3.53 billion, which lagged the Zacks Consensus Estimate of $3.85 billion by 8.3%. However, the reported figure was 11.9% higher than $3.15 billion a year ago.

Increased contribution from both utility and non-utility segments led to the year-over-year top-line growth.

Operational Results

Total expenses during the first quarter increased 13.2% to $3,286 million.

The company’s operating income declined 2.4% to $245 million from $251 million in the year-ago quarter.

Interest and other finance charges increased to $121 million from $78 million a year ago.

Segment Results

The Electric Transmission & Distribution segment reported operating income of $84 million in the first quarter compared with $115 million in the year-ago quarter.

The Indiana Electric segment operating loss was $9 million in the period of Feb 1, 2019 to Mar 31, 2019.

The Natural Gas Distribution segment reported operating income of $167 million compared with $156 million in the year-ago quarter.

The Energy Services segment reported operating income of $33 million against operating loss of $26 million in the year-ago quarter.

The midstream investments segment reported $62 million of equity income compared with $69 million a year ago.

The Corporate and other Operations segment incurred operating loss of $14 million against operating income of $6 million in the prior-year quarter. The decline can be primarily attributed to high merger-related expenses.

Financial Condition

As of Mar 31, 2019, CenterPoint Energy had cash and cash equivalents of $255 million, down significantly from $4,231 million as on Dec 31, 2018.

Total long-term debt was $13,759 million as on Mar 31, 2019, compared with $8,682 million as on Dec 31, 2018.

At the end of first-quarter 2019, the company’s net cash from operating activities was $271 million, down from $484 million in the previous year’s quarter.

Further, CenterPoint Energy’s capital expenditure totaled $528 million in the first quarter, up from $323 million a year ago.

CenterPoint Energy, Inc. Price, Consensus and EPS Surprise

The company reaffirmed its 2019 earnings guidance. The company expects to generate earnings of $1.60-$1.70 per diluted share, excluding certain impacts associated with its merger with Vectren.

The Zacks Consensus Estimate for 2019 earnings is pegged at $1.64, which lies below the mid-point of the company’s guided range.

Zacks Rank

CenterPoint Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

FirstEnergy Corp. (FE - Free Report) , which carries a Zacks Rank #2 (Buy), delivered first-quarter 2019 operating earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 66 cents by 1.52%.

NextEra Energy, Inc. (NEE - Free Report) , which carries a Zacks Rank #3, reported first-quarter 2019 adjusted earnings of $2.20 per share, beating the Zacks Consensus Estimate of $2.01 by 9.4%.

DTE Energy Co. (DTE - Free Report) , which carries a Zacks Rank #2, reported first-quarter 2019 operating earnings per share (EPS) of $2.05, which exceeded the Zacks Consensus Estimate of $1.95 by 5.1%.

This Could Be the Fastest Way to Grow Wealth in 2019

Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.

These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.

Click here to see these breakthrough stocks now >>


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in