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CenterPoint (CNP) Up 10.7% 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 10.7% 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 catalysts.
CenterPoint Energy Q3 Earnings Beat, Revenues Rise Y/Y
CenterPoint Energy reported third-quarter 2022 adjusted earnings of 32 cents per share, which beat the Zacks Consensus Estimate of 31 cents per share by 3.2%.
In the third quarter, CenterPoint Energy registered GAAP earnings of 30 cents per share compared with 33 cents recorded in the prior-year quarter.
Revenues
In the third quarter of 2022, CNP generated revenues worth $1,903 million, up 8.8% from the year-ago figure. The company’s revenues beat the Zacks Consensus Estimate of $1,742 million by 9.2%.
Operational Results
Total expenses during the reported quarter escalated 3.3% to $1,519 million.
The company’s operating income surged 38.1% year over year to $384 million in the quarter.
Interest expenses and other finance charges increased 1.8% to $116 million from $114 million in the year-ago quarter.
Financial Condition
As of Sep 30, 2022, CenterPoint Energy had cash and cash equivalents of $114 million, down from $230 million as of Dec 31, 2021.
The total long-term debt was $13,435 million as of Sep 30, 2022 compared with $15,558 million as of Dec 31, 2021.
CenterPoint Energy’s net cash flow from operating activities was $1,325 million during the nine months ended Sep 30, 2022 against cash outflow of $517 million in the year-ago period.
Further, CNP’s total capital expenditure was $3,079 million during the nine months ended Sep 30, 2022, up from $2,148 million in the year-ago period.
2022 Guidance
CenterPoint Energy reaffirmed its 2022 earnings guidance. It still expects to generate adjusted earnings per share (EPS) in the range of $1.37-$1.39. The Zacks Consensus Estimate for 2022 earnings is pegged at $1.39 per share, which matches the high end of the company’s guided range.
How Have Estimates Been Moving Since Then?
Estimates review followed an upward path over the past two months.
VGM Scores
Currently, CenterPoint has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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.
Performance of an Industry Player
CenterPoint is part of the Zacks Utility - Electric Power industry. Over the past month, American Electric Power (AEP - Free Report) , a stock from the same industry, has gained 9.7%. The company reported its results for the quarter ended September 2022 more than a month ago.
AEP reported revenues of $5.53 billion in the last reported quarter, representing a year-over-year change of +20.1%. EPS of $1.62 for the same period compares with $1.43 a year ago.
AEP is expected to post earnings of $1.03 per share for the current quarter, representing a year-over-year change of +5.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.8%.
AEP has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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CenterPoint (CNP) Up 10.7% 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 10.7% 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 catalysts.
CenterPoint Energy Q3 Earnings Beat, Revenues Rise Y/Y
CenterPoint Energy reported third-quarter 2022 adjusted earnings of 32 cents per share, which beat the Zacks Consensus Estimate of 31 cents per share by 3.2%.
In the third quarter, CenterPoint Energy registered GAAP earnings of 30 cents per share compared with 33 cents recorded in the prior-year quarter.
Revenues
In the third quarter of 2022, CNP generated revenues worth $1,903 million, up 8.8% from the year-ago figure. The company’s revenues beat the Zacks Consensus Estimate of $1,742 million by 9.2%.
Operational Results
Total expenses during the reported quarter escalated 3.3% to $1,519 million.
The company’s operating income surged 38.1% year over year to $384 million in the quarter.
Interest expenses and other finance charges increased 1.8% to $116 million from $114 million in the year-ago quarter.
Financial Condition
As of Sep 30, 2022, CenterPoint Energy had cash and cash equivalents of $114 million, down from $230 million as of Dec 31, 2021.
The total long-term debt was $13,435 million as of Sep 30, 2022 compared with $15,558 million as of Dec 31, 2021.
CenterPoint Energy’s net cash flow from operating activities was $1,325 million during the nine months ended Sep 30, 2022 against cash outflow of $517 million in the year-ago period.
Further, CNP’s total capital expenditure was $3,079 million during the nine months ended Sep 30, 2022, up from $2,148 million in the year-ago period.
2022 Guidance
CenterPoint Energy reaffirmed its 2022 earnings guidance. It still expects to generate adjusted earnings per share (EPS) in the range of $1.37-$1.39. The Zacks Consensus Estimate for 2022 earnings is pegged at $1.39 per share, which matches the high end of the company’s guided range.
How Have Estimates Been Moving Since Then?
Estimates review followed an upward path over the past two months.
VGM Scores
Currently, CenterPoint has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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.
Performance of an Industry Player
CenterPoint is part of the Zacks Utility - Electric Power industry. Over the past month, American Electric Power (AEP - Free Report) , a stock from the same industry, has gained 9.7%. The company reported its results for the quarter ended September 2022 more than a month ago.
AEP reported revenues of $5.53 billion in the last reported quarter, representing a year-over-year change of +20.1%. EPS of $1.62 for the same period compares with $1.43 a year ago.
AEP is expected to post earnings of $1.03 per share for the current quarter, representing a year-over-year change of +5.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.8%.
AEP has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.