We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Get Rid of CenterPoint Energy (CNP) Now
Read MoreHide Full Article
CenterPoint Energy, Inc.’s (CNP - Free Report) operations are subject to the impact of weather patterns. Toward this, the Hurricane Harvey that hit the city of Houston in August 2017 disrupted the company’s operations during the third quarter of 2017.
The company estimates that as a result of Hurricane Harvey, total costs to restore the electric delivery facilities damaged will range from $110 - $120 million, while that for restoring natural gas distribution facilities damaged will range from $25 - $30 million.
Surely this impacted the company’s third quarter results as is evident from the 4% decline observed in the operating income of its Electric Transmission & Distribution segment. Moreover, CenterPoint’s total expenses during the third quarter increased 13.3% year-over-year.
Coming to its earnings performance, the company’s third-quarter 2017 earnings missed the Zacks Consensus estimate by 4.9%. Quarterly earnings also declined 4.9% on a year-over-year basis.
Additionally, the company is subject to severe regulatory and judicial proceedings along with fluctuating commodity prices. Any adverse decisions in pending regulatory cases can affect CenterPoint Energy’s earnings substantially.
These may have led the company's shares to underperform its broader industry in last three months. Evidently the company gained 1.1% in the last three months, compared with the broader industry's growth of 2.3%.
PNM Resourcesposted positive earnings surprise of 9.41% in third quarter of 2017. Additionally, its current year estimates have increased to $1.86 per share from $1.85 per share in the last 60 days.
IDACORP posted positive earnings surprise of 8.43% in third quarter of 2017. Additionally, its current year estimates have increased to $4.08 per share from $4.00 per share in the last 60 days.
UNITIL Corporation reported positive earnings surprise of 45.45% in the third quarter of 2017. Its current year estimates have increased to $2.03 per share from $1.98 per share in the last 60 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Here's Why You Should Get Rid of CenterPoint Energy (CNP) Now
CenterPoint Energy, Inc.’s (CNP - Free Report) operations are subject to the impact of weather patterns. Toward this, the Hurricane Harvey that hit the city of Houston in August 2017 disrupted the company’s operations during the third quarter of 2017.
The company estimates that as a result of Hurricane Harvey, total costs to restore the electric delivery facilities damaged will range from $110 - $120 million, while that for restoring natural gas distribution facilities damaged will range from $25 - $30 million.
Surely this impacted the company’s third quarter results as is evident from the 4% decline observed in the operating income of its Electric Transmission & Distribution segment. Moreover, CenterPoint’s total expenses during the third quarter increased 13.3% year-over-year.
Coming to its earnings performance, the company’s third-quarter 2017 earnings missed the Zacks Consensus estimate by 4.9%. Quarterly earnings also declined 4.9% on a year-over-year basis.
Additionally, the company is subject to severe regulatory and judicial proceedings along with fluctuating commodity prices. Any adverse decisions in pending regulatory cases can affect CenterPoint Energy’s earnings substantially.
These may have led the company's shares to underperform its broader industry in last three months. Evidently the company gained 1.1% in the last three months, compared with the broader industry's growth of 2.3%.
Zacks Rank & Key Picks
CenterPoint Energy currently carries a Zacks Rank #4 (Sell). Investors can consider better-ranked stocks in the same industry such as PNM Resources, Inc. (PNM - Free Report) , IDACORP, Inc. (IDA - Free Report) and UNITIL Corporation (UTL - Free Report) , all of which carry Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PNM Resourcesposted positive earnings surprise of 9.41% in third quarter of 2017. Additionally, its current year estimates have increased to $1.86 per share from $1.85 per share in the last 60 days.
IDACORP posted positive earnings surprise of 8.43% in third quarter of 2017. Additionally, its current year estimates have increased to $4.08 per share from $4.00 per share in the last 60 days.
UNITIL Corporation reported positive earnings surprise of 45.45% in the third quarter of 2017. Its current year estimates have increased to $2.03 per share from $1.98 per share in the last 60 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>