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What's in Store for CenterPoint Energy (CNP) in Q1 Earnings?
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CenterPoint Energy, Inc. (CNP - Free Report) is slated to report first-quarter 2023 results on Apr 27, before the opening bell.
In the last reported quarter, the company delivered a negative earnings surprise of 3.45%. CNP has a trailing four-quarter average earnings surprise of 2.10%.
Factors to Note
The majority of the company’s service territories experienced warmer-than-normal temperature patterns for most of the first quarter. Such a weather pattern is expected to have hurt electricity demand for heating purposes during the winter months. This, in turn, might have negatively impacted CenterPoint Energy’s top-line performance in the soon-to-be-reported quarter.
A few tornedos affected some parts of CNP’s service territories during the first quarter, which may have disrupted its services in those areas. This is likely to have resulted in outages for its customers, which might have impacted its revenues in the quarter under review.
Nevertheless, favorable rate hikes, along with customer growth observed in the prior quarters, must have boosted the company’s revenues.
The Zacks Consensus Estimate for CenterPoint Energy’s first-quarter revenues is pegged at $2.79 billion, indicating a 1.1% increase from the year-ago quarter’s reported figure.
The severe weather conditions, mentioned above, might have damaged some of the company’s properties, thereby increasing its quarterly restoration costs. This, in turn, is likely to have hurt CNP’s first-quarter earnings.
However, sale proceeds from divestiture of Energy Transfers, along with benefits of Vectren integration and rising electricity demand, must have boosted the company’s overall bottom-line performance.
The Zacks Consensus Estimate for CNP’s first-quarter earnings is pegged at 48 cents per share, indicating a 2.1% improvement from the prior-year quarter’s reported number.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for CenterPoint Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here as you will see below.
The company has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are three Utility players that you may want to consider as these have the right combination of elements to come up with an earnings beat this reporting cycle:
NewJersey Resources boasts a long-term earnings growth rate of 6%. The Zacks Consensus Estimate for NJR’s first-quarter sales and earnings is pegged at $958.4 million and $1.20 per share, respectively.
PPL Corp. (PPL - Free Report) has an Earnings ESP of +7.69% and a Zacks Rank #3. The consensus mark for first-quarter earnings is pegged at 42 cents per share, implying a 2.4% increase from that reported in the prior-year quarter.
The same for PPL’s first-quarter sales is pegged at $1.86 billion. PPL has a four-quarter average earnings surprise of 1.49%.
Edison International (EIX - Free Report) has an Earnings ESP of +0.24% and a Zacks Rank #3. The consensus estimate for first-quarter earnings is pinned at $1.04 per share, indicating a 2.8% decline from the year-ago reported figure.
Edison International boasts a four-quarter average earnings surprise of 13.65%. The consensus mark for EIX’s first-quarter sales stands at $4.11 billion, indicating growth of 3.6% from that recorded in the prior-year quarter.
Image: Bigstock
What's in Store for CenterPoint Energy (CNP) in Q1 Earnings?
CenterPoint Energy, Inc. (CNP - Free Report) is slated to report first-quarter 2023 results on Apr 27, before the opening bell.
In the last reported quarter, the company delivered a negative earnings surprise of 3.45%. CNP has a trailing four-quarter average earnings surprise of 2.10%.
Factors to Note
The majority of the company’s service territories experienced warmer-than-normal temperature patterns for most of the first quarter. Such a weather pattern is expected to have hurt electricity demand for heating purposes during the winter months. This, in turn, might have negatively impacted CenterPoint Energy’s top-line performance in the soon-to-be-reported quarter.
CenterPoint Energy, Inc. Price and EPS Surprise
CenterPoint Energy, Inc. price-eps-surprise | CenterPoint Energy, Inc. Quote
A few tornedos affected some parts of CNP’s service territories during the first quarter, which may have disrupted its services in those areas. This is likely to have resulted in outages for its customers, which might have impacted its revenues in the quarter under review.
Nevertheless, favorable rate hikes, along with customer growth observed in the prior quarters, must have boosted the company’s revenues.
The Zacks Consensus Estimate for CenterPoint Energy’s first-quarter revenues is pegged at $2.79 billion, indicating a 1.1% increase from the year-ago quarter’s reported figure.
The severe weather conditions, mentioned above, might have damaged some of the company’s properties, thereby increasing its quarterly restoration costs. This, in turn, is likely to have hurt CNP’s first-quarter earnings.
However, sale proceeds from divestiture of Energy Transfers, along with benefits of Vectren integration and rising electricity demand, must have boosted the company’s overall bottom-line performance.
The Zacks Consensus Estimate for CNP’s first-quarter earnings is pegged at 48 cents per share, indicating a 2.1% improvement from the prior-year quarter’s reported number.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for CenterPoint Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here as you will see below.
The company has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are three Utility players that you may want to consider as these have the right combination of elements to come up with an earnings beat this reporting cycle:
NewJersey Resources (NJR - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
NewJersey Resources boasts a long-term earnings growth rate of 6%. The Zacks Consensus Estimate for NJR’s first-quarter sales and earnings is pegged at $958.4 million and $1.20 per share, respectively.
PPL Corp. (PPL - Free Report) has an Earnings ESP of +7.69% and a Zacks Rank #3. The consensus mark for first-quarter earnings is pegged at 42 cents per share, implying a 2.4% increase from that reported in the prior-year quarter.
The same for PPL’s first-quarter sales is pegged at $1.86 billion. PPL has a four-quarter average earnings surprise of 1.49%.
Edison International (EIX - Free Report) has an Earnings ESP of +0.24% and a Zacks Rank #3. The consensus estimate for first-quarter earnings is pinned at $1.04 per share, indicating a 2.8% decline from the year-ago reported figure.
Edison International boasts a four-quarter average earnings surprise of 13.65%. The consensus mark for EIX’s first-quarter sales stands at $4.11 billion, indicating growth of 3.6% from that recorded in the prior-year quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.