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CenterPoint Energy (CNP) Lags Q2 Earnings, Outlook Same
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CenterPoint Energy, Inc. (CNP - Free Report) reported second-quarter 2016 earnings of 17 cents per share, lagging the Zacks Consensus Estimate of 20 cents by 15%. The reported number was also 10.5% lower than the prior-year figure of 19 cents.
The downside was primarily due to lower contribution from its midstream investments. The changes in the fair value of commodity derivatives at Enable Midstream accounted for most of the headwinds the company experienced this quarter.
GAAP loss in the reported quarter was one cent versus earnings of 18 cents in the year-ago quarter.
CenterPoint Energy’s total revenues in the reported quarter were $1,574 million, short of the Zacks Consensus Estimate of $1,588 million by 0.9%. However, total revenues were 2.7% higher than $1,4532 million reported in the year-ago period.
The increase in the top line was mainly due to higher contribution from Energy Services, offset marginally by lower contribution from Natural Gas Distribution.
Operational Results
Total expenses decreased 3.4% to $1,392 million, primarily due to a decline in natural gas expenses.
The company’s operating income decreased 2.1% to $182 million from $186 million in the year-ago quarter.
Interest and other finance charges decreased to $86 million in the reported quarter from $89 million in the year-ago quarter.
The Electric Transmission & Distribution segment reported an operating income of $158 million, on par with the year-ago level.
Natural Gas Distribution reported an operating income of $20 million compared with $19 million in the year-ago quarter.
The Energy Services segment reported breakeven operating income compared with $9 million in the year-ago quarter.
Financial Condition
As of Jun 30, 2016, CenterPoint Energy had cash and cash equivalents of $271 million, down from $264 million as of Dec 31, 2015.
Total long-term debt was $7,780 million as of Jun 30, 2016, down from $7,866 million as of Dec 31, 2015.
In the first half of 2016, the company’s net cash from operating activities was $1,058 million, down from $1,122 million in the year-ago period.
In the reported quarter, CenterPoint Energy’s total capital expenditure was $358 million, down from $381 million in the year-ago quarter.
Guidance
CenterPoint maintained its 2016 earnings guidance in the range of $1.12–$1.20 per diluted share. This includes expected earnings per diluted share from utility operations in the range of 88–92 cents and midstream investment of 24–28 cents.
The company expects Utility operations to contribute nearly 75% to 80% of its earnings in 2016, compared with 70% in 2015.
As the company is lowering its long-term debt, interest expenses in 2016 are expected to be lower than 2015 levels.
Peer Releases
CMS Energy Corporation (CMS - Free Report) reported second-quarter 2016 adjusted earnings per share of 45 cents, beating the Zacks Consensus Estimate of 35 cents by 28.6%.
DTE Energy Company (DTE - Free Report) reported second-quarter 2016 operating earnings per share of 98 cents, beating the Zacks Consensus Estimate of 90 cents by 8.9%.
Consolidated Edison Inc. (ED - Free Report) posted second-quarter 2016 adjusted earnings of 60 cents per share, missing the Zacks Consensus Estimate of 72 cents by 16.7%.
Zacks Rank
CenterPoint Energy currently has a Zacks Rank #3 (Hold).
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CenterPoint Energy (CNP) Lags Q2 Earnings, Outlook Same
CenterPoint Energy, Inc. (CNP - Free Report) reported second-quarter 2016 earnings of 17 cents per share, lagging the Zacks Consensus Estimate of 20 cents by 15%. The reported number was also 10.5% lower than the prior-year figure of 19 cents.
The downside was primarily due to lower contribution from its midstream investments. The changes in the fair value of commodity derivatives at Enable Midstream accounted for most of the headwinds the company experienced this quarter.
GAAP loss in the reported quarter was one cent versus earnings of 18 cents in the year-ago quarter.
Revenues
CenterPoint Energy’s total revenues in the reported quarter were $1,574 million, short of the Zacks Consensus Estimate of $1,588 million by 0.9%. However, total revenues were 2.7% higher than $1,4532 million reported in the year-ago period.
The increase in the top line was mainly due to higher contribution from Energy Services, offset marginally by lower contribution from Natural Gas Distribution.
Operational Results
Total expenses decreased 3.4% to $1,392 million, primarily due to a decline in natural gas expenses.
The company’s operating income decreased 2.1% to $182 million from $186 million in the year-ago quarter.
Interest and other finance charges decreased to $86 million in the reported quarter from $89 million in the year-ago quarter.
CENTERPOINT EGY Price, Consensus and EPS Surprise
CENTERPOINT EGY Price, Consensus and EPS Surprise | CENTERPOINT EGY Quote
Segment Results
The Electric Transmission & Distribution segment reported an operating income of $158 million, on par with the year-ago level.
Natural Gas Distribution reported an operating income of $20 million compared with $19 million in the year-ago quarter.
The Energy Services segment reported breakeven operating income compared with $9 million in the year-ago quarter.
Financial Condition
As of Jun 30, 2016, CenterPoint Energy had cash and cash equivalents of $271 million, down from $264 million as of Dec 31, 2015.
Total long-term debt was $7,780 million as of Jun 30, 2016, down from $7,866 million as of Dec 31, 2015.
In the first half of 2016, the company’s net cash from operating activities was $1,058 million, down from $1,122 million in the year-ago period.
In the reported quarter, CenterPoint Energy’s total capital expenditure was $358 million, down from $381 million in the year-ago quarter.
Guidance
CenterPoint maintained its 2016 earnings guidance in the range of $1.12–$1.20 per diluted share. This includes expected earnings per diluted share from utility operations in the range of 88–92 cents and midstream investment of 24–28 cents.
The company expects Utility operations to contribute nearly 75% to 80% of its earnings in 2016, compared with 70% in 2015.
As the company is lowering its long-term debt, interest expenses in 2016 are expected to be lower than 2015 levels.
Peer Releases
CMS Energy Corporation (CMS - Free Report) reported second-quarter 2016 adjusted earnings per share of 45 cents, beating the Zacks Consensus Estimate of 35 cents by 28.6%.
DTE Energy Company (DTE - Free Report) reported second-quarter 2016 operating earnings per share of 98 cents, beating the Zacks Consensus Estimate of 90 cents by 8.9%.
Consolidated Edison Inc. (ED - Free Report) posted second-quarter 2016 adjusted earnings of 60 cents per share, missing the Zacks Consensus Estimate of 72 cents by 16.7%.
Zacks Rank
CenterPoint Energy currently has a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>