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

Zacks Equity Research

CenterPoint Energy, Inc. CNP 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.

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CenterPoint Energy, Inc. Price, Consensus and EPS Surprise

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 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.

The Zacks Consensus Estimate for 2019 earnings is pegged at $1.64, which lies just below the mid-point of the company’s 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

CMS Energy Corporation’s CMS second-quarter 2019 adjusted earnings per share (EPS) of 33 cents declined 32.7% year over year. The bottom line also missed the Zacks Consensus Estimate of 44 cents by 25%.

NextEra Energy, Inc. NEE reported second-quarter 2019 adjusted earnings of $2.35 per share, which exceeded the Zacks Consensus Estimate of $2.28 by 3.1%. Moreover, the bottom line improved 12.9% on a year-over-year basis.

FirstEnergy Corporation FE delivered second-quarter 2019 operating earnings of 61 cents per share, which outpaced the Zacks Consensus Estimate of 60 cents by 1.67%. However, the reported figure decreased 1.61% from the year-ago quarter’s 62 cents.

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