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CenterPoint Energy (CNP) Q4 Earnings Top, EPS Guidance Up

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CenterPoint Energy, Inc. (CNP - Free Report) reported fourth-quarter 2020 adjusted earnings of 29 cents per share, which surpassed the Zacks Consensus Estimate of 23 cents by 26.1%. The bottom line, however, deteriorated 35.6% from the year-ago quarter’s earnings.

The company reported GAAP earnings of 27 cents per share compared with 25 cents reported in the prior-year quarter.

Revenues

CenterPoint Energy’s total revenues in the quarter were $2,054 million, which lagged the Zacks Consensus Estimate of $2,095 million by 1.9%. However, the top line came in at 1.7% higher than the prior-year quarter’s $2,019 million.

The year-over-year improvement was primarily owing to higher contribution from the utility, which was marginally offset by lower contribution from its non-utility segment.

Utility revenues in the fourth quarter were $1,962 million, up 2.3% year over year while Non-utility revenues were down 8.9% year over year to $92 million.

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 fourth quarter increased 1.4% to $1,769 million.

The company’s operating income improved 4% year over year to $285 million in the fourth quarter.

Interest expenses and other finance charges decreased 18.7% year over year to $113 million from $139 million in the fourth quarter of 2019.

Financial Condition

As of Dec 31, 2020, CenterPoint Energy had cash and cash equivalents of $147 million, down from $241 million as of Dec 31, 2019.

Total long-term debt was $11,521 million as of Dec 31, 2020 compared with $14,244 million as of Dec 31, 2019.

In 2020, the company’s net cash from operating activities was $1,995 million, up from $1,638 million in 2019.

Further, CenterPoint Energy’s total capital expenditure was $647 million in the fourth quarter, down from $759 million in the year-ago quarter.

Guidance

CenterPoint Energy raises its 2021 Utility EPS outlook to the $1.24-$1.26 range from the prior expectation of $1.23-$1.25. The company delivered earnings of $1.40 per share in 2020.

The Zacks Consensus Estimate for 2021 earnings is pegged at $1.42 per share, which lies above the guided range. The capital plan of $16.7 billion for the 2021-2025 time period will further strengthen the company’s electric and natural gas operations.

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 Releases

Exelon Corporation’s (EXC - Free Report) fourth-quarter 2020 operating earnings of 76 cents per share surpassed the Zacks Consensus Estimate of 71 cents by 7%.
 
NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2020 adjusted earnings of 40 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 2.6%.

Xcel Energy Inc. (XEL - Free Report) posted fourth-quarter 2020 operating earnings of 54 cents per share, in line with the Zacks Consensus Estimate.

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