Back to top

Image: Bigstock

CenterPoint Energy (CNP) Q1 Earnings Beat, Revenues Fall Y/Y

Read MoreHide Full Article

CenterPoint Energy, Inc. (CNP - Free Report) reported first-quarter 2020 adjusted earnings of 50 cents per share, which surpassed the Zacks Consensus Estimate of 45 cents by 11.1%. The bottom line also improved 8.7% from the year-ago quarter’s 46 cents.

The company incurred GAAP loss of $2.44 per share against earnings of 28 cents registered in the prior-year quarter.

The year-over-year downside can be attributed to after-tax non-cash impairment charges and losses on assets held for sale in the first quarter of 2020.

Revenues

CenterPoint Energy’s total revenues in the quarter were $2,167 million, which lagged the Zacks Consensus Estimate of $2,332 million by 7.1%. Moreover, the reported figure came in 2.8% lower than the prior-year quarter’s $2,229 million.

Decreased contribution from utility segment dragged down the top line.

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

Total expenses during the first quarter declined 3.4% to $1,950 million.

The company’s operating income rose 2.8% year over year to $217 million in the first quarter.

Interest and other finance charges increased to $139 million from $121 million in the year-ago quarter.

Segment Results

The Houston Electric-Transmission & Distribution segment reported adjusted earnings of $40 million for the first quarter compared with $38 million witnessed in the year-ago quarter.

The Natural Gas Distribution segment registered adjusted earnings of $207 million compared with the year-ago quarter’s $164 million.

The Indiana Electric - Integrated segment generatedadjusted earnings of $14 million compared with $9 million in the year-earlier period.

The Midstream Investments segment recorded adjusted earnings of $50 million compared with $24 million in the prior-year quarter.

The Corporate and Other Operations segment reported earnings of $4 million against loss of $22 million in the year-ago quarter.

Financial Condition

As of Mar 31, 2020, CenterPoint Energy had cash and cash equivalents of $220 million, down from $241 million as of Dec 31, 2019.

Total long-term debt was $13,830 million as of Mar 31, 2020, compared with $14,244 million as of Dec 31, 2019.

At the end of first-quarter 2020, the company’s net cash from operating activities was $662 million, up from the previous year’s $271 million.

Further, CenterPoint Energy’s total capital expenditure was$615 million in the first quarter, up from $528 million in the year-ago quarter.

2020 Guidance

CenterPoint Energy reiterated its 2020 earnings guidance. The company still expects to generate earnings of $1.10-$1.20 per share.

The Zacks Consensus Estimate for current-year earnings is pegged at $1.32, which lies above the guided range.

Zacks Rank

CenterPoint Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

Public Service Enterprise Group Inc. (PEG - Free Report) reported first-quarter 2020 adjusted operating earnings of $1.03 per share, which came in line with the Zacks Consensus Estimate.

FirstEnergy Corporation (FE - Free Report) delivered first-quarter 2020 operating earnings of 66 cents per share, which beat the Zacks Consensus Estimate of 64 cents by 3.13%.

NextEra Energy (NEE - Free Report) reported first-quarter 2020 adjusted earnings of $2.38 per share, which surpassed the Zacks Consensus Estimate of $2.21 by 7.7%.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>