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CenterPoint Energy (CNP) Q2 Earnings Lag, Revenues Up Y/Y

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CenterPoint Energy, Inc. (CNP - Free Report) reported second-quarter 2018 adjusted earnings of 30 cents per share, lagging the Zacks Consensus Estimate of 32 cents by 6.3%. Quarterly earnings rose 3.4% from the year-ago figure of 29 cents.

Barring one-time adjustments, the company incurred GAAP loss of 17 cents per share in the reported quarter against GAAP earnings of 31 cents in the year-ago quarter.

Revenues

CenterPoint Energy’s total revenues in the reported quarter were $2,186 million, which surpassed the Zacks Consensus Estimate of $2,159 million by 1.3%. Revenues were also 2% higher than $2,143 million reported a year ago.

The rise in the top line was driven by higher contribution from the Electric Transmission & Distribution segment.

Operational Results

Total expenses during the quarter increased 5% to $1,999 million.

The company’s operating income declined 22.1% to $187 million from $240 million in the year-ago quarter.

Interest and other finance charges increased to $91 million in the reported quarter from $77 million a year ago.

Segment Results

The Electric Transmission & Distribution segment reported operating income of $181 million during the second quarter compared with $171 million in the year-ago quarter.

The Natural Gas Distribution segment reported operating income of $7 million compared with $42 million in the year-ago quarter.

The Energy Services segment reported operating income of $15 million compared with $16 million in the year-ago quarter.

The company’s midstream investments segment reported $58 million of equity income for the second quarter of 2018 compared with $59 million a year ago.

CenterPoint Energy, Inc. Price, Consensus and EPS Surprise

 

CenterPoint Energy, Inc. Price, Consensus and EPS Surprise | CenterPoint Energy, Inc. Quote

Financial Condition

As of Jun 30, 2018, CenterPoint Energy had cash and cash equivalents of $328 million, up from $260 million as of Dec 31, 2017.

Total long-term debt was $7,760 million as of Jun 30, 2018 compared with $8,195 million as of Dec 31, 2017.

At the end of second-quarter 2018, the company’s net cash from operating activities was $1,093 million, up from $677 million in the year-ago period.

Also, CenterPoint Energy’s total capital expenditure was $369 million in the second quarter, marginally down from $370 million a year ago.

Guidance

CenterPoint Energy reaffirmed its 2018 earnings guidance. The company continues to expect to achieve the high end of the range of $1.50-$1.60 per diluted share, excluding costs associated with the pending merger with Vectren.

Zacks Rank

CenterPoint Energy currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

Xcel Energy (XEL - Free Report) recorded second-quarter 2018 operating earnings of 52 cents per share, beating the Zacks Consensus Estimate of 47 cents by 10.6%. Also, the bottom line was 15.6% higher than the year-ago quarter’s tally.

DTE Energy (DTE - Free Report) reported second-quarter 2018 operating earnings per share of $1.36, which outpaced the Zacks Consensus Estimate of $1.11 by 22.5%.

American Electric Power (AEP - Free Report) reported second-quarter 2018 adjusted earnings per share of $1.01, beating the Zacks Consensus Estimate of 88 cents by 14.8%.

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