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Utility Stocks Q1 Earnings Due on May 3: CNP, EIX & More

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·6-min read
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Utilities constitutes one of the nine sectors out of the total 16 Zacks sectors, which are expected to report year-over-year earnings growth in the first quarter of 2022.

So far, only a handful of the S&P 500 members from the Zacks Utilities sector have released their Q1 earnings. Another cohort of major utility stocks, including CenterPoint Energy CNP, Edison International EIX, CMS Energy CMS, Public Service Enterprise Group PEG and Chesapeake Utilities CPK, is set to announce their earnings on May 3.

Factors Likely to Influence Q1 Utility Results

Factors like new electric rates, customer additions, cost management, implementation of energy efficiency programs, ongoing investments to improve the resilience of the electric infrastructure against extreme weather conditions and their transition toward cost-effective alternate sources of fuel to produce electricity are expected to have benefitted domestic-focused utility companies.
The improvement in economic activities in recent times buoyed by the gradual recovery from the initial impacts of the pandemic is likely to have boosted fresh demand for utility services. In particular, strong demand from the commercial and industrial groups of customers has been bolstering the utility operators.

Such a solid demand trend must have contributed favorably toward utilities’ top-line performance in the first quarter. However, extreme weather conditions like tornadoes and severe snow storms might have caused an outage for some utilities, thereby hurting their quarterly revenue generation.

However, the Q1 performance of the capital-intensive utilities is likely to have been adversely impacted by the increase in interest rates from the near-zero levels. An increase in borrowing costs and the resultant rise in interest expenses are likely to have weighed on the earnings of the companies operating in the space.

Q1 Expectations

Total Q1 earnings of Utility stocks are expected to increase 9.3% year over year, while revenues are likely to decline 8%. For more details on quarterly releases, you can go through our latest Earnings Preview.

Utilities' Earnings in Focus

Let's take a look at some Utility stocks that are scheduled to report earnings on May 3.

CenterPoint Energy: The majority of the company’s service territories experienced mixed weather patterns during the January-March 2022 quarter. However, some tornadoes along with an ice storm affected some parts of its service territories, which may have disrupted this utility’s services in those areas.

This might have pushed up its quarterly costs for restoration work, thereby hurting CNP’s earnings in the soon-to-be-reported quarter (read more: What's in Store for CenterPoint Energy in Q1 Earnings?).

Our proven model does not conclusively predict 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 odds of an earnings beat. But this is not the case here.

The company has an Earnings ESP of -0.53% and carries a Zacks Rank #3.You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

CenterPoint Energy, Inc. Price and EPS Surprise

CenterPoint Energy, Inc. Price and EPS Surprise
CenterPoint Energy, Inc. Price and EPS Surprise

CenterPoint Energy, Inc. price-eps-surprise | CenterPoint Energy, Inc. Quote

Edison International: Majority of the company’s service territories witnessed warmer-than-normal temperatures, accompanied by dry weather conditions, during the first quarter of 2022. This is likely to have contributed to Edison International’s Q1 top line.

In the first quarter, the company’s service area experienced some wildfire events. The resultant costs bore by the company due to this wildfire to restore power and mend its infrastructure might have had an adverse impact on its Q1 earnings.

The company has an Earnings ESP of 0.00% and carries a Zacks Rank #3 (read more: What's in Store for Edison International in Q1 Earnings?).

Edison International Price and EPS Surprise

Edison International Price and EPS Surprise
Edison International Price and EPS Surprise

Edison International price-eps-surprise | Edison International Quote

CMS Energy: During the first quarter, the company’s service territories witnessed warmer-than-normal temperatures accompanied by moderate-to-lower snowfall in some parts. Such weather patterns are expected to have unfavorably impacted the company’s revenues.

Nevertheless, strong load growth is projected to have contributed to the company’s Q1 revenues. Meanwhile, rate relief net of investment costs, largely driven by the electric rate order, may have benefited the company’s bottom line in the soon-to-be-reported quarter.

The company has an Earnings ESP of 0.00% and carries a Zacks Rank #3 (read more: What's in the Offing for CMS Energy in Q1 Earnings?).

CMS Energy Corporation Price and EPS Surprise

CMS Energy Corporation Price and EPS Surprise
CMS Energy Corporation Price and EPS Surprise

CMS Energy Corporation price-eps-surprise | CMS Energy Corporation Quote

Public Service Enterprise: During the January-March 2022 quarter, the company’s service territories witnessed mixed weather patterns. While at the onset of the first quarter, Public Service Enterprise’s service areas observed colder-than-normal temperature, in the mid and latter parts of the quarter, the temperature was warmer than normal.

PSEG’s service territories suffered from severe storm activities during the first quarter, which might have damaged the company’s infrastructure. Costs related to such unfavorable weather patterns might have weighed on the first-quarter bottom line.

The company has an Earnings ESP of 0.00% and carries a Zacks Rank #3 (read more: What Awaits Public Service Enterprise in Q1 Earnings?).

Public Service Enterprise Group Incorporated Price and EPS Surprise

Public Service Enterprise Group Incorporated Price and EPS Surprise
Public Service Enterprise Group Incorporated Price and EPS Surprise

Public Service Enterprise Group Incorporated price-eps-surprise | Public Service Enterprise Group Incorporated Quote

Chesapeake Utility: The company boasts a four-quarter average earnings surprise of 10.45%. The Zacks Consensus Estimate for Chesapeake’s Q1 earnings, pegged at $2.06 per share, implies an improvement of 5.1% from first-quarter 2021’s reported figure.

The estimate has remained unchanged over the past 60 days. The Zacks Consensus Estimate for CPK’s Q1 sales, pegged at $189.8 million, implies a slip of 0.7% from first-quarter 2021’s reported figure.

The company has an Earnings ESP of 0.00% and carries a Zacks Rank #3

Chesapeake Utilities Corporation Price and EPS Surprise

Chesapeake Utilities Corporation Price and EPS Surprise
Chesapeake Utilities Corporation Price and EPS Surprise

Chesapeake Utilities Corporation price-eps-surprise | Chesapeake Utilities Corporation Quote

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Edison International (EIX) : Free Stock Analysis Report

Public Service Enterprise Group Incorporated (PEG) : Free Stock Analysis Report

CMS Energy Corporation (CMS) : Free Stock Analysis Report

CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report

Chesapeake Utilities Corporation (CPK) : Free Stock Analysis Report

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