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CenterPoint (CNP) Up 11.2% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for CenterPoint Energy (CNP - Free Report) . Shares have added about 11.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is CenterPoint due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
CenterPoint Energy Q4 Earnings Top, EPS Guidance Up
CenterPoint Energy 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.
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.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions. The consensus estimate has shifted 14.94% due to these changes.
VGM Scores
Currently, CenterPoint has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
CenterPoint has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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CenterPoint (CNP) Up 11.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for CenterPoint Energy (CNP - Free Report) . Shares have added about 11.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is CenterPoint due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
CenterPoint Energy Q4 Earnings Top, EPS Guidance Up
CenterPoint Energy 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.
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.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions. The consensus estimate has shifted 14.94% due to these changes.
VGM Scores
Currently, CenterPoint has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
CenterPoint has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.