We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CenterPoint (CNP) Up 0.6% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
A month has gone by since the last earnings report for CenterPoint Energy (CNP - Free Report) . Shares have added about 0.6% in that time frame, underperforming 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 Q2 Earnings Beat, Revenues Up Y/Y
CenterPoint Energy reported second-quarter 2019 adjusted earnings of 35 cents per share, which surpassed the Zacks Consensus Estimate of 31 cents. The bottom line also improved by 16.7% from the year-ago quarter’s tally of 30 cents.
The company’s GAAP earnings came in at 33 cents per share against a loss of 17 cents incurred in the prior-year quarter.
Revenues
CenterPoint Energy’s total revenues in the quarter were $2.80 billion, which missed the Zacks Consensus Estimate of $2.83 billion by 1.2%. However, the top line was 28% higher than $2.19 billion a year ago. Notably, increased contribution from both the utility and non-utility segments led to top-line growth.
Operational Results
Total expenses during the second quarter increased 25.6% to $2,511 million.
The company’s operating income also increased 53.5% to $287 million from $187 million in the year-ago quarter.
Interest and other finance charges increased to $134 million from $91 million a year ago.
Segment Results
The Houston electric-transmission & distribution segment reported operating income of $169 million in the second quarter compared with $181 million in the year-ago quarter.
The Natural Gas distribution segment reported operating income of $47 million compared with $7 million in the prior-year quarter.
The Energy Services segment registered operating income of $29 million compared with $15 million in the year-ago quarter.
The Midstream investments segment reported $74 million of equity income compared with $58 million a year ago.
The Other Operations segment incurred an operating loss of $7 million compared with operating loss of $16 million in the prior-year quarter.
The Indiana electric–integrated segment reported operating income of $25 million for the second quarter of 2019.
Financial Condition
As of Jun 30, 2019, CenterPoint Energy had cash and cash equivalents of $271 million, down significantly from $4,231 million as of Dec 31, 2018. Total long-term debt was $14,121 million as of Jun 30, 2019, compared with $8,682 million as of Dec 31, 2018.
At the end of the second quarter, the company’s net cash from operating activities was $574 million, down from $1,093 million in the previous year. Further, CenterPoint Energy’s total capital expenditure totaled $634 million in the second quarter, up from $369 million a year ago.
2019 Guidance
CenterPoint Energy reiterated its 2019 earnings guidance. The company continues to expect earnings of $1.60-$1.70 per diluted share, excluding certain impacts associated in relation to its merger with Vectren.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
Currently, CenterPoint has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% 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
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, CenterPoint has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CenterPoint (CNP) Up 0.6% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for CenterPoint Energy (CNP - Free Report) . Shares have added about 0.6% in that time frame, underperforming 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 Q2 Earnings Beat, Revenues Up Y/Y
CenterPoint Energy reported second-quarter 2019 adjusted earnings of 35 cents per share, which surpassed the Zacks Consensus Estimate of 31 cents. The bottom line also improved by 16.7% from the year-ago quarter’s tally of 30 cents.
The company’s GAAP earnings came in at 33 cents per share against a loss of 17 cents incurred in the prior-year quarter.
Revenues
CenterPoint Energy’s total revenues in the quarter were $2.80 billion, which missed the Zacks Consensus Estimate of $2.83 billion by 1.2%. However, the top line was 28% higher than $2.19 billion a year ago. Notably, increased contribution from both the utility and non-utility segments led to top-line growth.
Operational Results
Total expenses during the second quarter increased 25.6% to $2,511 million.
The company’s operating income also increased 53.5% to $287 million from $187 million in the year-ago quarter.
Interest and other finance charges increased to $134 million from $91 million a year ago.
Segment Results
The Houston electric-transmission & distribution segment reported operating income of $169 million in the second quarter compared with $181 million in the year-ago quarter.
The Natural Gas distribution segment reported operating income of $47 million compared with $7 million in the prior-year quarter.
The Energy Services segment registered operating income of $29 million compared with $15 million in the year-ago quarter.
The Midstream investments segment reported $74 million of equity income compared with $58 million a year ago.
The Other Operations segment incurred an operating loss of $7 million compared with operating loss of $16 million in the prior-year quarter.
The Indiana electric–integrated segment reported operating income of $25 million for the second quarter of 2019.
Financial Condition
As of Jun 30, 2019, CenterPoint Energy had cash and cash equivalents of $271 million, down significantly from $4,231 million as of Dec 31, 2018.
Total long-term debt was $14,121 million as of Jun 30, 2019, compared with $8,682 million as of Dec 31, 2018.
At the end of the second quarter, the company’s net cash from operating activities was $574 million, down from $1,093 million in the previous year.
Further, CenterPoint Energy’s total capital expenditure totaled $634 million in the second quarter, up from $369 million a year ago.
2019 Guidance
CenterPoint Energy reiterated its 2019 earnings guidance. The company continues to expect earnings of $1.60-$1.70 per diluted share, excluding certain impacts associated in relation to its merger with Vectren.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
Currently, CenterPoint has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% 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
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, CenterPoint has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.