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CenterPoint Energy Q3 Earnings Miss Estimates, Revenues Decline Y/Y

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CenterPoint Energy, Inc. (CNP - Free Report) reported third-quarter 2024 adjusted earnings of 31 cents per share, which missed the Zacks Consensus Estimate of 36 cents by 13.9%. The bottom line also deteriorated 22.5% from the year-ago figure due to an increase in operating and maintenance expenses. This rise in expenses was due to the increased and accelerated activities under the first phase of the Greater Houston Resiliency Initiative. 

The company’s GAAP earnings also came in at 30 cents per share, which declined 25% from the prior-year figure of 40 cents.

The year-over-year deterioration can be attributed to lower revenues and higher total expenses compared to the previous year.

Q3 Revenues

CNP generated revenues of $1.86 billion, which missed the Zacks Consensus Estimate of $1.88 billion by 1.2%. The top line also came in 0.2% lower than the year-ago reported figure.

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

During the third quarter, total expenses increased 6.7% year over year to $1.43 billion.

The company reported an operating income of $424 million compared with $518 million a year ago.

Interest expenses and other finance charges totaled $191 million, up 8.5% from $176 million recorded in the previous year.

Financial Condition

As of Sept. 30, 2024, CenterPoint Energy had cash and cash equivalents of $112 million compared with $90 million as of Dec. 31, 2023.

The total long-term debt was $19.73 billion as of Sept. 30, 2024, compared with $17.56 billion as of Dec. 31, 2023.

Net cash flow from operating activities amounted to $1.25 billion as of Sept. 30, 2024, compared with $3.07 billion in the year-ago period.

The total capital expenditure was $2.50 million as of Sept. 30, 2024, compared with $3.32 billion a year ago.

2024 Guidance

CenterPoint Energy reaffirmed its 2024 earnings guidance. It continues to expect to generate adjusted earnings per share in the range of $1.61-$1.63. The Zacks Consensus Estimate for earnings is pegged at $1.62 per share, in line with the midpoint of the company’s guided range.

CNP initiated its 2025 earnings guidance. The company expects to generate adjusted earnings in the range of $1.74-$1.76 per share. The Zacks Consensus Estimate for earnings is pegged at $1.73 per share, which lies lower than the company’s guided range.

Zacks Rank

CNP Energy currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

NextEra Energy, Inc. (NEE - Free Report) reported third-quarter 2024 adjusted earnings of $1.03 per share, which beat the Zacks Consensus Estimate of 98 cents by 5.1%. The bottom line was also up nearly 12.8% year over year.

Operating revenues totaled $7.56 billion, which lagged the Zacks Consensus Estimate of $8.45 billion by 10.5%. The top line improved 5.5% year over year.

DTE Energy Company (DTE - Free Report) reported third-quarter 2024 operating earnings per share (EPS) of $2.22, which beat the Zacks Consensus Estimate of $1.87 by 18.7%. The bottom line also improved a solid 54.2% from the year-ago figure of $1.44.

DTE Energy reiterated its 2024 operating EPS projection. The company still expects operating EPS to be in the range of $6.54-$6.83. 

Avangrid, Inc. (AGR - Free Report) reported third-quarter 2024 earnings of 55 cents per share, which surpassed the Zacks Consensus Estimate of 33 cents by 66.7%. The bottom line also increased 104% from the year-ago figure of 27 cents.

AGR’s operating revenues amounted to $2.08 billion, which beat the Zacks Consensus Estimate of $2.01 billion by 3.7%. The top line also increased 5.5% from $1.97 billion reported in the comparable period of 2023.

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