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What's in Store for CenterPoint Energy (CNP) Q4 Earnings?

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CenterPoint Energy CNP is scheduled to release fourth-quarter and full-year 2019 results on Feb 27, before the opening bell.

In the last reported quarter, the company witnessed a positive earnings surprise of 23.26%. Moreover, it surpassed the Zacks Consensus Estimate on two occasions for as many misses, the average positive beat being 7.04%.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors at Play

During most part of the fourth quarter, CenterPoint Energy’s operational territories experienced below-normal temperatures. This is likely to have escalated household expenditure on heating, in turn, positively impacting the company’s fourth-quarter revenues.

The Zacks Consensus Estimate for quarterly revenues is pegged at $3,897 million, suggesting a jump of 28.3% from the year-ago quarter’s reported figure.

CenterPoint Energy's quarterly earnings are anticipated to have benefited from lower federal income-tax rate, along with utility rate relief and customer growth. Furthermore, the utility’s prudent efforts to manage operations and management (O&M) expenses are likely to have bolstered its bottom line for the soon-to-be-reported quarter. Considering such trends, we remain optimistic about the company’s bottom-line performance in the fourth quarter.  

Notably, the Zacks Consensus Estimate for fourth-quarter earnings is pegged at 37 cents, calling for a 2.8% increase from the year-ago quarter’s reported number.

CenterPoint Energy, Inc. Price and EPS Surprise

Earnings Whispers

Our proven model predicts 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.

Earnings ESP: The company’s Earnings ESP is +3.40%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: CenterPoint Energy currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Here are a few other players from the Utilities sector that have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Public Service Enterprise Group Incorporated PEG has an Earnings ESP of +1.21% and carries a Zacks Rank of 3, currently. The company will announce fourth-quarter 2019 results on Feb 26.

The AES Corp AES has an Earnings ESP of +3.03 and carries a Zacks Rank #3, at present. The company will release quarterly figures on Feb 28.

A Recent Utility Release

CMS Energy CMS reported fourth-quarter 2019 adjusted earnings per share (EPS) of 68 cents, significantly up 70% from the year-ago quarter reported figure of 40 cents. The bottom line, however, missed the Zacks Consensus Estimate of 69 cents.

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