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CenterPoint Energy (CNP) Beats on Q1 Earnings, Keeps View

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CenterPoint Energy, Inc. (CNP - Free Report) reported first-quarter 2017 earnings of 44 cents per share, beating the Zacks Consensus Estimate of 36 cents by 22.2%. Quarterly earnings were in line with the year-ago number.

While GAAP earnings in the reported quarter were 37 cents, the company had incurred a GAAP earnings of 32 cents in the year-ago quarter.

Revenues

CenterPoint Energy’s total revenue in the reported quarter was $2,735 million, missing the Zacks Consensus Estimate of $2,321 million by 17.8%. Revenues were also 37.9% higher than $1,984 million reported a year ago.

The increase in the top line was mainly due to higher contribution from Natural Gas Distribution and Energy Services, offset marginally by lower contribution from Electric Transmission & Distribution Energy Services.

Operational Results

Total expenses during the quarter increased 41.9% to $2,461 million.

The company’s operating income increased 9.6% to $274 million from $250 million in the year-ago quarter.

Interest and other finance charges decreased to $78 million in the reported quarter from $87 million a year ago.

Segment Results

The Electric Transmission & Distribution segment reported operating income of $78 million during the first quarter, compared with $83 million in the year-ago quarter.

The Natural Gas Distribution segment reported operating income of $164 million, compared with $160 million in the year-ago quarter.

The Energy Services segment reported operating income of $20 million, compared with $15 million in the year-ago quarter.

CenterPoint Energy, Inc. Price, Consensus and EPS Surprise

 

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

Financial Condition

As of Mar 31, 2017, CenterPoint Energy had cash and cash equivalents of $254 million, down from $341 million as of Dec 31, 2016.

Total long-term debt was $7,892 million as of Mar 31, 2017, up from $7,532 million as of Dec 31, 2016.

In the first quarter, the company’s net cash from operating activities was $319 million, down from $637 million in the year-ago period.

Also, CenterPoint Energy’s total capital expenditure was $298 million, down from $309 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 includes estimated utility operations earnings of 93–97 cents per diluted share and midstream investment earnings of 31–37 cents per diluted share.
                              
Peer Releases

DTE Energy Company (DTE - Free Report) reported first-quarter 2017 operating earnings per share of $1.79, which beat the Zacks Consensus Estimate of $1.57 by 14%. Total revenue came in at $3.24 billion, which surpassed the Zacks Consensus Estimate of $2.58 billion by 25.6%.

Entergy Corporation (ETR - Free Report) reported first-quarter 2017 operational earnings of 99 cents per share, missing the Zacks Consensus Estimate of $1.06 by 6.6%. Total revenue of $2,588.5 million beat the Zacks Consensus Estimate of $2,566 million by 0.9%.

NextEra Energy, Inc. (NEE - Free Report) reported first-quarter 2017 adjusted EPS of $1.75, beating the Zacks Consensus Estimate of $1.56 by 12.2%. Operating revenues totaled $3,972 million, beating the Zacks Consensus Estimate of $3,943 million by nearly 0.7%.

Zacks Rank

CenterPoint Energy currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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