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CenterPoint Energy (CNP) Tops On Q4 Earnings, Issues '18 View

Published 02/21/2018, 09:10 PM
Updated 07/09/2023, 06:31 AM

CenterPoint Energy, Inc. (NYSE:CNP) reported fourth-quarter 2017 adjusted earnings of 33 cents per share, which beat the Zacks Consensus Estimate of 30 cents by 10%. Earnings improved 26.9% from the year-ago quarter’s 26 cents.

Including a one-time tax benefit, the company reported earnings per share of $2.99, compared with 23 cents in the year-ago quarter.

CenterPoint Energy, Inc. Price, Consensus and EPS Surprise

CenterPoint Energy, Inc. Price, Consensus and EPS Surprise | CenterPoint Energy, Inc. Quote

In 2017, CenterPoint Energy reported adjusted earnings per share of $1.37, which beat the Zacks Consensus Estimate of $1.33 by 3%. Full-year earnings improved 18.1% from the year-ago $1.16.

Revenues

Total revenues in the reported quarter were $2,638 million, which surpassed the Zacks Consensus Estimate of $2,151 million by 22.6%. Revenues were also 26.8% higher than $2,081 million reported a year ago.

The top-line beat was driven by higher contribution from Natural Gas Distribution, Energy Services as well as Electric Transmission & Distribution segments.

In 2017, the company’s total revenues were $9.61 billion, beating the Zacks Consensus Estimate of $8.74 billion by 10%. Revenues were also 27.7% higher than $7.53 billion reported a year ago.

Operational Results

Total expenses in the quarter increased 27.4% to $2,342 million.

Operating income improved 21.8% to $296 million from $243 million a year ago.

Interest and other finance charges decreased to $78 million in the reported quarter from $82 million a year ago.

Segment Results

The Electric Transmission & Distribution segment reported operating income of $121 million in the fourth quarter, compared with $130 million in the year-ago quarter.

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The Natural Gas Distribution segment reported operating income of $108 million, compared with $101 million in the year-earlier quarter.

The Energy Services segment reported operating income of $67 million in the fourth quarter, compared with $9 million in the year-ago quarter.

Financial Condition

As of Dec 31, 2017, CenterPoint Energy had cash and cash equivalents of $260 million, down from $341 million as of Dec 31, 2016.

Total long-term debt was $8,195 million as of Dec 31, 2017, compared with $7,532 million as of Dec 31, 2016.

At the end of 2017, the company’s net cash from operating activities was $1,421 million, compared with $1,931 million a year ago.

Total capital expenditure was $1,494 million at 2017-end, compared with $1,406 million in the year-ago quarter.

Guidance

CenterPoint Energy issued its 2018 outlook. The company expects earnings in the range of $1.50-$1.60.

Zacks Rank

CenterPoint Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Peer Releases

Duke Energy (NYSE:DUK) reported fourth-quarter 2017 adjusted earnings of 94 cents per share, beating the Zacks Consensus Estimate of 91 cents by 3.3%.

PG&E Corporation’s (NYSE:PCG) adjusted operating earnings per share of 63 cents in fourth-quarter 2017 missed the Zacks Consensus Estimate of 69 cents by 8.7%.

NextEra Energy (NYSE:NEE) reported fourth-quarter 2017 adjusted earnings of $1.25 per share, lagging the Zacks Consensus Estimate of $1.31 by 4.6%.

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

NextEra Energy, Inc. (NEE): Free Stock Analysis Report

Duke Energy Corporation (DUK): Free Stock Analysis Report

Pacific Gas & Electric Co. (PCG): Free Stock Analysis Report

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