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CenterPoint Energy (CNP) Q3 Earnings Miss, Revises '17 View

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CenterPoint Energy, Inc. (CNP - Free Report) reported third-quarter 2017 earnings of 39 cents per share, which missed the Zacks Consensus Estimate of 41 cents by 4.9%. Quarterly earnings also dropped 4.9% from the year-ago figure of 41 cents.

Revenues

CenterPoint Energy’s total revenues in the reported quarter were $2,098 million, which surpassed the Zacks Consensus Estimate of $2,015 million by 4.1%. Revenues were also 11.1% higher than $1,889 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 by lower contribution from Electric Transmission & Distribution segment.

CenterPoint Energy, Inc. Price, Consensus and EPS Surprise

 

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

 

Operational Results

Total expenses during the quarter increased 13.3% to $1,819 million.

The company’s operating income declined 1.8% to $279 million from $284 million in the year-ago quarter.

Interest and other finance charges decreased to $80 million in the reported quarter from $83 million a year ago.

Segment Results

The Electric Transmission & Distribution segment reported operating income of $247 million during the third quarter compared with $257 million in the year-ago quarter.

The Natural Gas Distribution segment reported operating income of $19 million compared with $22 million in the year-ago quarter.

The Energy Services segment reported operating income of $7 million in the third quarter.

Financial Condition

As of Sep 30, 2017, CenterPoint Energy had cash and cash equivalents of $201 million, down from $341 million as of Dec 31, 2016.

Total long-term debt was $7,531 million as of Sep 30, 2017 compared with $7,532 million as of Dec 31, 2016.

At the end of the third quarter, the company’s net cash from operating activities was $1,031 million, down from $1,455 million in the year-ago period.

Also, CenterPoint Energy’s total capital expenditure was $358 million in the third quarter, down from $361 million in the year-ago quarter.

Guidance

CenterPoint currently expects to generate earnings per share (EPS) at or near the high end of its prior guidance range of $1.25-$1.33 in 2017.

Zacks Rank

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

Recent Peer Releases

Hawaiian Electric Industries Inc.(HE - Free Report) reported adjusted EPS of 55 cents in third-quarter 2017, which missed the Zacks Consensus Estimate of 57 cents by 3.5%. On a year-over-year basis, the figure declined 5.2% from the prior-year quarter level of 58 cents.

PG&E Corporation’s (PCG - Free Report) adjusted operating EPS of $1.12 in third-quarter 2017 surpassed the Zacks Consensus Estimate of 94 cents by 19.1%. Earnings were also up 19.1% from 94 cents reported in the year-ago quarter.

CMS Energy Corporation (CMS - Free Report) reported third-quarter 2017 adjusted EPSof 62 cents, which surpassed the Zacks Consensus Estimate of 55 cents by 12.7%. Quarterly earnings however declined 11.4% from the year-ago figure of 70 cents.

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