What's in Store for CenterPoint Energy (CNP) in Q4 Earnings?

NI AEP CNP SJW

CenterPoint Energy, Inc. (CNP - Free Report) is slated to report fourth-quarter and full-year 2022 results on Feb 17, before the opening bell.

In the last reported quarter, the company delivered an earnings surprise of 3.23%. CenterPoint Energy has a trailing four-quarter earnings surprise of 7.00%, on average.

Factors to Note

The majority of CNP’s service territories experienced warmer-than-normal temperature patterns for most of the fourth quarter. Such a weather pattern is expected to bolster electricity demand among the company’s customers for cooling purposes. This, along with favorable outcomes from rate cases, must have boosted its top-line performance in the soon-to-be-reported quarter.

However, tornadoes along with thunderstorms and resulting flash floods affected many parts of CenterPoint Energy’s service territories, which may have disrupted this utility’s services in those areas. This is likely to have resulted in outages for its customers, which might have impacted revenues in the to-be-reported quarter.

The Zacks Consensus Estimate for CNP’s fourth-quarter revenues is pegged at $2.29 billion, indicating a decline of 0.8% from the year-ago quarter’s reported figure.

The severe weather conditions, mentioned above, might have damaged some of the utility’s properties, thereby increasing its quarterly costs for restoration work. This, in turn, might have hurt earnings in the soon-to-be-reported quarter.

Elevated interest expenses, along with the extraordinary gas costs incurred by the company during Winter Storm Uri, might continue to hurt its Q4 bottom-line performance.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 29 cents per share, indicating a decline of 19.4% from the prior-year reported figure.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for CenterPoint Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here as you will see below.

The company has an Earnings ESP of -1.14% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are three Utility players you may want to consider as these have the right combination of elements to post an earnings beat this season:

SJW Group (SJW - Free Report) has an Earnings ESP of +0.97% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for SJW Group’s fourth-quarter sales is pegged at $159.4 million, indicating an improvement of 14.1% from 2021 fourth-quarter sales. The estimate for Q4 earnings, pegged at $1.03 per share, implies an improvement of 145.2% from 2021 fourth-quarter sales.

American Electric Power (AEP - Free Report) has an Earnings ESP of +0.33% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter earnings, pegged at $1.02 per share, implies an improvement of 4.1% from the prior-year quarter’s tally.

The Zacks Consensus Estimate for AEP’s fourth-quarter sales is pegged at $4.25 billion. AEP has a four-quarter earnings surprise of 2.91%.

NiSource (NI - Free Report) has an Earnings ESP of +1.03% and a Zacks Rank #2. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 49 cents per share, indicating an improvement of 25.6% from the prior-year reported figure.

NiSource boasts a four-quarter earnings surprise of 0.33%, on average. The Zacks Consensus Estimate for NI’s fourth-quarter sales is pegged at $1.56 billion, indicating growth of 10.4% from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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