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CenterPoint Energy (CNP) Q3 Earnings Lag, Revenues Rise Y/Y
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CenterPoint Energy, Inc. (CNP - Free Report) reported third-quarter 2018 adjusted earnings of 39 cents per share, lagging the Zacks Consensus Estimate of 41 cents by 4.9%. Quarterly earnings improved by a penny from the year-ago quarter’s tally.
The company reported GAAP earnings of 35 cents per share in the reported quarter.
Revenues
CenterPoint Energy’s total revenues in the quarter were $2,212 million, which surpassed the Zacks Consensus Estimate of $2,120 million by 4.3%. Revenues were also 5.4% higher than $2,098 million reported a year ago.
The rise in the top line was driven by higher contribution from both its utility and non-utility segments.
Operational Results
Total expenses during the third quarter increased 10.3% to $1,986 million.
The company’s operating income declined 23.1% to $226 million from $297 million in the year-ago quarter.
Interest and other finance charges increased to $90 million from $80 million a year ago.
Segment Results
The Electric Transmission & Distribution segment reported operating income of $227 million during the third quarter compared with $254 million in the year-ago quarter.
The Natural Gas Distribution segment reported operating income of $3 million compared with $25 million in the year-ago quarter.
The Energy Services segment reported operating loss of $9 million against the operating income of $7 million in the year-ago quarter.
The company’s midstream investments segment reported $81 million of equity income compared with $68 million a year ago.
The company’s other operations segment reported operating income of $5 million compared with operating income of $11 million in the prior-year quarter. This decrease is primarily due to costs related to the pending merger with Vectren.
CenterPoint Energy, Inc. Price, Consensus and EPS Surprise
As of Sep 30, 2018, CenterPoint Energy had cash and cash equivalents of $293 million, up from $260 million as of Dec 31, 2017.
Total long-term debt was $7,252 million as of Sep 30, 2018 compared with $8,195 million as of Dec 31, 2017.
At the end of third-quarter 2018, the company’s net cash from operating activities was $1,679 million, up from $1,028 million in the year-ago period.
Also, CenterPoint Energy’s total capital expenditure was $434 million, up from $358 million a year ago.
2018 Guidance
CenterPoint Energy reaffirmed its 2018 earnings guidance. The company expects to achieve the high end of the earlier announced guidance range of $1.50-$1.60 per diluted share, excluding costs associated with the pending merger with Vectren.
In addition, the company has issued $5.2 billion of debt and equity securities to fund the pending merger with Vectren. Therefore, 2018 is expected to have higher net interest expenses and a higher common stock share count.
American Electric Power (AEP - Free Report) reported third-quarter 2018 operating earnings per share (EPS) of $1.25, surpassing the Zacks Consensus Estimate of $1.23 by 1.6%.
NextEra Energy (NEE - Free Report) reported third-quarter 2018 adjusted earnings of $2.18 per share, beating the Zacks Consensus Estimate of $2.17 by 0.46%.
DTE Energy Company (DTE - Free Report) reported third-quarter 2018 operating earnings per share of $2.13, which outpaced the Zacks Consensus Estimate of $1.74 by 22.4%.
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CenterPoint Energy (CNP) Q3 Earnings Lag, Revenues Rise Y/Y
CenterPoint Energy, Inc. (CNP - Free Report) reported third-quarter 2018 adjusted earnings of 39 cents per share, lagging the Zacks Consensus Estimate of 41 cents by 4.9%. Quarterly earnings improved by a penny from the year-ago quarter’s tally.
The company reported GAAP earnings of 35 cents per share in the reported quarter.
Revenues
CenterPoint Energy’s total revenues in the quarter were $2,212 million, which surpassed the Zacks Consensus Estimate of $2,120 million by 4.3%. Revenues were also 5.4% higher than $2,098 million reported a year ago.
The rise in the top line was driven by higher contribution from both its utility and non-utility segments.
Operational Results
Total expenses during the third quarter increased 10.3% to $1,986 million.
The company’s operating income declined 23.1% to $226 million from $297 million in the year-ago quarter.
Interest and other finance charges increased to $90 million from $80 million a year ago.
Segment Results
The Electric Transmission & Distribution segment reported operating income of $227 million during the third quarter compared with $254 million in the year-ago quarter.
The Natural Gas Distribution segment reported operating income of $3 million compared with $25 million in the year-ago quarter.
The Energy Services segment reported operating loss of $9 million against the operating income of $7 million in the year-ago quarter.
The company’s midstream investments segment reported $81 million of equity income compared with $68 million a year ago.
The company’s other operations segment reported operating income of $5 million compared with operating income of $11 million in the prior-year quarter. This decrease is primarily due to costs related to the pending merger with Vectren.
CenterPoint Energy, Inc. Price, Consensus and EPS Surprise
CenterPoint Energy, Inc. Price, Consensus and EPS Surprise | CenterPoint Energy, Inc. Quote
Financial Condition
As of Sep 30, 2018, CenterPoint Energy had cash and cash equivalents of $293 million, up from $260 million as of Dec 31, 2017.
Total long-term debt was $7,252 million as of Sep 30, 2018 compared with $8,195 million as of Dec 31, 2017.
At the end of third-quarter 2018, the company’s net cash from operating activities was $1,679 million, up from $1,028 million in the year-ago period.
Also, CenterPoint Energy’s total capital expenditure was $434 million, up from $358 million a year ago.
2018 Guidance
CenterPoint Energy reaffirmed its 2018 earnings guidance. The company expects to achieve the high end of the earlier announced guidance range of $1.50-$1.60 per diluted share, excluding costs associated with the pending merger with Vectren.
In addition, the company has issued $5.2 billion of debt and equity securities to fund the pending merger with Vectren. Therefore, 2018 is expected to have higher net interest expenses and a higher common stock share count.
Zacks Rank
CenterPoint Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility Releases
American Electric Power (AEP - Free Report) reported third-quarter 2018 operating earnings per share (EPS) of $1.25, surpassing the Zacks Consensus Estimate of $1.23 by 1.6%.
NextEra Energy (NEE - Free Report) reported third-quarter 2018 adjusted earnings of $2.18 per share, beating the Zacks Consensus Estimate of $2.17 by 0.46%.
DTE Energy Company (DTE - Free Report) reported third-quarter 2018 operating earnings per share of $2.13, which outpaced the Zacks Consensus Estimate of $1.74 by 22.4%.
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>>