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What's in Store for CenterPoint Energy (CNP) in Q1 Earnings?
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CenterPoint Energy Corp (CNP - Free Report) will release first-quarter 2018 results before the market opens on May 4.
In the last reported quarter, the company pulled off a positive earnings surprise of 10.00%. Moreover, CenterPoint Energy outperformed the Zacks Consensus Estimate in three of the trailing four quarters with an average beat of 11.50%.
Let’s see how things are shaping up for the company prior to this announcement.
CenterPoint Energy witnessed increased customer count during fourth-quarter 2017, which in turn, bolstered its quarterly growth. We expect the company’s first-quarter results to reflect a similar trend. Further, rate relief, energy services and midstream segments are likely to drive CenterPoint Energy’s performance in the to-be reported quarter.
The reduction in tax rates, primarily associated with the unregulated businesses, is expected to positively drive the bottom line of the company. In line with this, the Zacks Consensus Estimate for the company’s first-quarter earnings of 44 cents, marks a 18.9% increase year over year.
Major regions of CenterPoint Energy’s service territory witnessed colder-than-normal winter during the first quarter. This must have led to higher expenditure for consumers, which is likely to boost the company’s sales. Notably, the consensus estimates for first-quarter revenues of $2.75 billion hints at an annual rise of 0.6%.
Earnings Whispers
Our proven model does not conclusively show that CenterPoint Energy is likely to beat on earnings this quarter. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. This is not the case here, as you will see below.
Zacks ESP: CenterPoint Energy has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CenterPoint Energy carries a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult.
Conversely, we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few operators in the Zacks Utility sector that you may consider, as our model shows that these have the right combination of elements to deliver earnings beat this quarter:
IDACORP, Inc. (IDA - Free Report) has an Earnings ESP of +3.55% and a Zacks Rank #2. The company is scheduled to report first-quarter results on May 3.
Ameren Corporation (AEE - Free Report) has an Earnings ESP of +1.45% and a Zacks Rank #3. The company is scheduled to report first-quarter results on May 9.
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What's in Store for CenterPoint Energy (CNP) in Q1 Earnings?
CenterPoint Energy Corp (CNP - Free Report) will release first-quarter 2018 results before the market opens on May 4.
In the last reported quarter, the company pulled off a positive earnings surprise of 10.00%. Moreover, CenterPoint Energy outperformed the Zacks Consensus Estimate in three of the trailing four quarters with an average beat of 11.50%.
Let’s see how things are shaping up for the company prior to this announcement.
CenterPoint Energy, Inc. Price and EPS Surprise
CenterPoint Energy, Inc. Price and EPS Surprise | CenterPoint Energy, Inc. Quote
Factors at Play
CenterPoint Energy witnessed increased customer count during fourth-quarter 2017, which in turn, bolstered its quarterly growth. We expect the company’s first-quarter results to reflect a similar trend. Further, rate relief, energy services and midstream segments are likely to drive CenterPoint Energy’s performance in the to-be reported quarter.
The reduction in tax rates, primarily associated with the unregulated businesses, is expected to positively drive the bottom line of the company. In line with this, the Zacks Consensus Estimate for the company’s first-quarter earnings of 44 cents, marks a 18.9% increase year over year.
Major regions of CenterPoint Energy’s service territory witnessed colder-than-normal winter during the first quarter. This must have led to higher expenditure for consumers, which is likely to boost the company’s sales. Notably, the consensus estimates for first-quarter revenues of $2.75 billion hints at an annual rise of 0.6%.
Earnings Whispers
Our proven model does not conclusively show that CenterPoint Energy is likely to beat on earnings this quarter. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. This is not the case here, as you will see below.
Zacks ESP: CenterPoint Energy has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CenterPoint Energy carries a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult.
Conversely, we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few operators in the Zacks Utility sector that you may consider, as our model shows that these have the right combination of elements to deliver earnings beat this quarter:
Hawaiian Electric Industries, Inc. (HE - Free Report) has an Earnings ESP of +0.91% and a Zacks Rank #2. The company is expected to report first-quarter results on May 4. You can see the complete list of today’s Zacks #1 Rank stocks here.
IDACORP, Inc. (IDA - Free Report) has an Earnings ESP of +3.55% and a Zacks Rank #2. The company is scheduled to report first-quarter results on May 3.
Ameren Corporation (AEE - Free Report) has an Earnings ESP of +1.45% and a Zacks Rank #3. The company is scheduled to report first-quarter results on May 9.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>