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CenterPoint Energy (CNP) Q2 Earnings Beat, Revenues Fall Y/Y

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CenterPoint Energy, Inc. (CNP - Free Report) reported second-quarter 2020 adjusted earnings of 21 cents per share, which surpassed the Zacks Consensus Estimate of 19 cents by 10.5%. The bottom line however deteriorated 40% from the year-ago quarter earnings of 35 cents.

The company reported GAAP earnings of 11 cents per share compared with earnings of 33 cents registered in the prior-year quarter.

The year-over-year downside can be primarily attributed to COVID-19 pandemic-led impacts.

Revenues

CenterPoint Energy’s total revenues in the quarter were $1,575 million, which lagged the Zacks Consensus Estimate of $2,114 million by 25.5%. Moreover, the reported figure came in 5% lower than the prior-year quarter’s $1,658 million.

Decreased contribution from utility segment dragged down the top line.

CenterPoint Energy, Inc. Price, Consensus and EPS Surprise

CenterPoint Energy, Inc. Price, Consensus and EPS Surprise

CenterPoint Energy, Inc. price-consensus-eps-surprise-chart | CenterPoint Energy, Inc. Quote

Operational Results

Total expenses during the second quarter declined 6.2% to $1,340 million.

The company’s operating income rose 2.6% year over year to $235 million in the second quarter.

Interest expense and other finance charges decreased to $128 million from $134 million in the year-ago quarter.

Segment Results

The Houston Electric-Transmission & Distribution segment reported adjusted earnings of $89 million for the second quarter compared with $100 million in the year-ago quarter.

The Natural Gas Distribution segment registered adjusted earnings of $35 million compared with the year-ago quarter’s $23 million.

The Indiana Electric - Integrated segment generated earnings of $19 million compared with $16 million in the year-earlier period.

The Midstream Investments segment recorded earnings of $24 million compared with $50 million in the prior-year quarter.

The Corporate and Other Operations segment reported net loss of $28 million compared with loss of $38 million in the year-ago quarter.

Financial Condition

As of Jun 30, 2020, CenterPoint Energy had cash and cash equivalents of $168 million, down from $241 million as of Dec 31, 2019.

Total long-term debt was $10,937 million as of Jun 30, 2020, compared with $14,244 million as of Dec 31, 2019.

At the end of second-quarter 2020, the company’s net cash from operating activities was $1,181 million, up from the previous year’s $574 million.

Further, CenterPoint Energy’s total capital expenditure was $632 million in the second quarter, down from $634 million in the year-ago quarter.

2020 Guidance

CenterPoint Energy reiterated its 2020 earnings guidance. The company still expects to generate earnings of $1.10-$1.20 per share.

The Zacks Consensus Estimate for current-year earnings is pegged at $1.28, which lies above the guided range.

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.

Other Utility Releases

FirstEnergy Corporation (FE - Free Report) delivered second-quarter 2020 operating earnings of 57 cents per share, which beat the Zacks Consensus Estimate of 55 cents by 3.64%.

NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2020 adjusted earnings of $2.61 per share, surpassingthe Zacks Consensus Estimate of $2.50 by 4.4%.

CMS Energy Corporation (CMS - Free Report) reported second-quarter 2020 adjusted earnings per share of 49 cents, which surpassed the Zacks Consensus Estimate of 45 cents by 8.9%.

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