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CenterPoint Energy (CNP) Q3 Earnings Beat, Revenues Fall Y/Y

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CenterPoint Energy, Inc. (CNP - Free Report) reported third-quarter 2020 adjusted earnings of 34 cents per share, which surpassed the Zacks Consensus Estimate of 32 cents by 6.25%. The bottom line, however, deteriorated 27.7% from the year-ago quarter’s earnings of 47 cents.

The company reported GAAP earnings of 13 cents per share compared with 47 cents reported in the prior-year quarter.

Revenues

CenterPoint Energy’s total revenues in the quarter were $1,622 million, which lagged the Zacks Consensus Estimate of $1,624 million by a mere 0.1%. Moreover, the reported figure came in 2.2% lower than the prior-year quarter’s $1,658 million.

Lower contribution from the utility and non-utility segment dragged down the top line.

Operational Results

Total expenses during the third-quarter increased 1.5% to $1,320 million.

The company’s operating income declined 15.4% year over year to $302 million in the third quarter.

Interest expenses and other finance charges decreased to $121 million from $134 million in the year-ago quarter.

Segment Results

The Houston Electric-Transmission & Distribution segment reported a net income of $157 million for the third quarter compared with $185 million in the year-ago quarter.

The Natural Gas Distribution segment reported a net income of $5 million compared with the year-ago quarter’s $6 million.

The Indiana Electric - Integrated segment generated a net income of $31 million compared with $34 million in the year-earlier period.

The Midstream Investments segment recorded a net loss of $62 million against the net income of $50 million in the prior-year quarter.

CenterPoint Energy, Inc. Price, Consensus and EPS Surprise

Financial Condition

As of Sep 30, 2020, CenterPoint Energy had cash and cash equivalents of $185 million, down from $241 million as of Dec 31, 2019.

Total long-term debt was $11,946 as of Sep 30, 2020, compared with $14,244 million as of Dec 31, 2019.

At the end of third-quarter 2020, the company’s net cash from operating activities was $1,439 million, up from the prior-year quarter’s $1,086 million.

Further, CenterPoint Energy’s total capital expenditure was $642 million in the third quarter, down from $666 million in the year-ago quarter.

2020 Guidance

CenterPoint Energy has raised its 2020 Utility EPS guidance range to $1.12-$1.20 per share, from the earlier guidance of $1.10-$1.20.

The Zacks Consensus Estimate for current-year earnings is pegged at $1.29 per share, 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.

Recent Utility Releases

American Electric Power (AEP - Free Report) reported third-quarter 2020 adjusted earnings per share of $1.47, which beat the Zacks Consensus Estimate of $1.46 by 0.7%.

NextEra Energy (NEE - Free Report) reported third-quarter 2020 adjusted earnings of $2.66 per share, which beat the Zacks Consensus Estimate of $2.65 by 0.4%.

Entergy Corporation (ETR - Free Report) reported third-quarter 2020 adjusted earnings of $2.44 per share, which surpassed the Zacks Consensus Estimate of $2.42 by 0.8%.

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