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CenterPoint Energy (CNP) Q4 Earnings Beat, Revenues Up Y/Y

Zacks Equity Research
·4-min read

CenterPoint Energy, Inc. CNP reported fourth-quarter 2019 adjusted earnings of 45 cents per share, which exceeded the Zacks Consensus Estimate of 37 cents by 21.6%. The bottom line also jumped 25% from the year-ago quarter’s 36 cents.

The company’s GAAP earnings came in at 25 cents per share compared with the 18 cents registered in the prior-year quarter.

For 2019, CenterPoint Energy posted adjusted earnings of $1.79 per share, beating the Zacks Consensus Estimate of $1.69 by 5.9%. Full-year earnings also improved 11.9% from the year-earlier tally of $1.60.

Revenues

CenterPoint Energy’s total revenues in the quarter were $3,230 million, which lagged the Zacks Consensus Estimate of $3,897 million by 17.1%. However, the reported figure came in 6.4% higher than the prior year’s $3,036 million.

Increased contributions from both utility segments fueled top-line growth.

For 2019, the company’s total revenues of $12,301 million missed the Zacks Consensus Estimate of $12,890 million by 4.6%. The top line, however, came in 16.2% higher than the $10,589 million registered in 2018.

Operational Results

Total expenses during the fourth quarter flared up 2.1% to $2,928 million.

The company’s operating income surged 80.8% to $302 million from the $167 million registered in the year-ago period.

Interest and other finance charges increased to $139 million from the prior year’s $102 million.

Segment Results

The Electric Transmission & Distribution segment reported operating income of $102 million in the fourth quarter compared with the $100 million witnessed in the year-ago quarter.

The Natural Gas Distribution segment registered operating income of $167 million compared with the year-ago quarter’s $100 million.

The Energy Services segment incurred operating loss of $32 million compared with the operating loss of $27 million posted in the year-earlier period.

The Infrastructure Services segment recorded operating income of $45 million compared with the $95 million witnessed in the prior-year quarter.

The Other Operations segment incurred operating loss of $6 million, flat year on year.

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

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Financial Condition

As of Dec 31, 2019, CenterPoint Energy had cash and cash equivalents of $241 million, down significantly from $4,231 million as of Dec 31, 2018.

Total long-term debt was $14,244 million as of Dec 31, 2019, compared with $8,682 million as of Dec 31, 2018.

At the end of 2019, the company’s net cash from operating activities was $1.638 million, up from the previous year’s $2,136 million.

Further, CenterPoint Energy’s total capital expenditure summed $2,580 million in 2019, up from the $1,720 million witnessed last year.

2020 Guidance

CenterPoint Energy has issued its 2020 earnings guidance. The company currently expects to generate earnings of $1.10-$1.20 per diluted share, excluding certain impacts associated in relation to its merger with Vectren. Its Midstream Investments EPS projected range is 23-28 cents.

The Zacks Consensus Estimate for ongoing-year earnings is pegged at $1.58, which lies above 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 CMS reported fourth-quarter 2019 adjusted earnings per share (EPS) of 68 cents, considerably up 70% from the year-ago quarter reported figure of 40 cents. The bottom line, however, missed the Zacks Consensus Estimate of 69 cents.

NextEra Energy NEE posted adjusted earnings of $1.44 per share for the December-end quarter, lagging the Zacks Consensus Estimate of $1.54 by 6.5%.

Dominion Energy D delivered operating earnings of $1.18 per share for the final quarter of 2019, beating the Zacks Consensus Estimate of $1.16 by 1.7%.

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