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CenterPoint's Systematic Investments to Boost 2017 Earnings
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CenterPoint Energy Inc. (CNP - Free Report) has issued its bottom line guidance for 2017. The company expects earnings in the range of $1.25 to $1.33 per share in 2017. The company also reaffirmed its 2016 earnings expectations in the range of $1.16 to $1.20 per share.
Factors That will Drive 2017 Earnings
In 2017, CenterPoint Energy’s earnings are expected to benefit from higher contribution from the utilities and improved performance at Energy Services as a result of the company’s acquisitions.
The bottom line is anticipated to be supported by the company’s investments in Utility operations and the Midstream business. It plans to invest $1.5 billion in 2017, 14% higher than its previous capital expenditure forecast for the year.
In addition, we believe that the ongoing improvement in economic conditions in CenterPoint Energy’s operating territories will boost its customer count as well as demand for utility services.
Capital Spending Strategy
CenterPoint Energy is investing substantially to expand its operations to cope with the increasing utility demand. The company is currently focused on upgrading infrastructure and improving reliability. . The company is targeting 4–6% annual EPS growth through 2018, inclusive of Midstream Investments.
CenterPoint Energy’s capital expenditure in the first nine months of 2016 was $1.04 billion. Out of the planned 2017 capital expenditure, the company will deploy nearly $0.92 billion toward supporting electric operations and $0.53 billion toward strengthening Gas Distribution operations.
Price Movement
Shares of CenterPoint Energy have gained 44.1% in the last 12 months, outperforming the Zacks categorized Utility- Electric Power industry’s gain of 7.1%.
Ongoing improvement in the economic conditions is helping the company expand its customer base, which in turn is translating into higher demand for its services.
Ameren’s 2017 estimates improved 0.4% to $2.77 from $2.76 over the last 60 days. Shares of the company gained 22.1% in the last 12 months, outperforming the broader industry.
Hawaiian Electric’s 2017 estimates inched up 0.6% to $1.80 from $1.79 over the last 60 days. Its shares gained 15.3% in the last 12 months, outperforming the broader industry.
Exelon Corporation’s 2017 estimates inched up 1.1% to $2.68 from $2.65 over the last 60 days. Its shares gained 28.6% in the last 12 months, outperforming the broader industry.
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CenterPoint's Systematic Investments to Boost 2017 Earnings
CenterPoint Energy Inc. (CNP - Free Report) has issued its bottom line guidance for 2017. The company expects earnings in the range of $1.25 to $1.33 per share in 2017. The company also reaffirmed its 2016 earnings expectations in the range of $1.16 to $1.20 per share.
Factors That will Drive 2017 Earnings
In 2017, CenterPoint Energy’s earnings are expected to benefit from higher contribution from the utilities and improved performance at Energy Services as a result of the company’s acquisitions.
The bottom line is anticipated to be supported by the company’s investments in Utility operations and the Midstream business. It plans to invest $1.5 billion in 2017, 14% higher than its previous capital expenditure forecast for the year.
In addition, we believe that the ongoing improvement in economic conditions in CenterPoint Energy’s operating territories will boost its customer count as well as demand for utility services.
Capital Spending Strategy
CenterPoint Energy is investing substantially to expand its operations to cope with the increasing utility demand. The company is currently focused on upgrading infrastructure and improving reliability. . The company is targeting 4–6% annual EPS growth through 2018, inclusive of Midstream Investments.
CenterPoint Energy’s capital expenditure in the first nine months of 2016 was $1.04 billion. Out of the planned 2017 capital expenditure, the company will deploy nearly $0.92 billion toward supporting electric operations and $0.53 billion toward strengthening Gas Distribution operations.
Price Movement
Shares of CenterPoint Energy have gained 44.1% in the last 12 months, outperforming the Zacks categorized Utility- Electric Power industry’s gain of 7.1%.
Ongoing improvement in the economic conditions is helping the company expand its customer base, which in turn is translating into higher demand for its services.
Zacks Rank & Key Picks
CenterPoint Energy currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include Ameren Corporation (AEE - Free Report) , Hawaiian Electric Industries, Inc. (HE - Free Report) and Exelon Corporation (EXC - Free Report) . All the companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ameren’s 2017 estimates improved 0.4% to $2.77 from $2.76 over the last 60 days. Shares of the company gained 22.1% in the last 12 months, outperforming the broader industry.
Hawaiian Electric’s 2017 estimates inched up 0.6% to $1.80 from $1.79 over the last 60 days. Its shares gained 15.3% in the last 12 months, outperforming the broader industry.
Exelon Corporation’s 2017 estimates inched up 1.1% to $2.68 from $2.65 over the last 60 days. Its shares gained 28.6% in the last 12 months, outperforming the broader industry.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>