CenterPoint (CNP) Up 2.3% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for CenterPoint Energy (CNP). Shares have added about 2.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is CenterPoint due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
CenterPoint Energy Q1 Earnings Meet Estimates, Sales Rise
CenterPoint Energy reported first-quarter 2022 adjusted earnings of 47 cents per share, which came in line with the Zacks Consensus Estimate. The bottom line declined by 20.3% from the year-ago quarter’s figure.
In the first quarter, CenterPoint Energy registered GAAP earnings of 82 cents per share compared with the 56 cents recorded in the prior-year quarter.
Revenues
In the first quarter of 2022, CNP generated revenues worth $2,763 million, up 8.5% from the year-ago figure. The company’s revenues beat the Zacks Consensus Estimate of $2.559.4 million by 8%.
Operational Results
Total expenses during the reported quarter escalated by 9.2% to $2,286 million.
The company’s operating income surged 5.3% year over year to $477 million in the quarter.
Interest expenses and other finance charges increased 9.3% to $153 million from $140 million in the year-ago quarter.
Financial Condition
As of Mar 31, 2022, CenterPoint Energy had cash and cash equivalents of $125 million, down from $230 million as of Dec 31, 2021.
The total long-term debt was $12,106 million as of Mar 31, 2022 compared with $15,558 million as of Dec 31, 2021.
CenterPoint Energy’s net cash flow from the operating activities was $580 million during the first quarter against the cash outflow of $1,681 million in the year-ago period.
Further, CNP’s total capital expenditure was $846 million at the end of the first quarter, up from $594 million in the year-ago period.
2022 Guidance
CenterPoint Energy reaffirmed its 2022 earnings guidance. It continues to expect to generate adjusted earnings per share (EPS) in the range of $1.36-$1.38. The Zacks Consensus Estimate for 2022 earnings is pegged at $1.38 per share, which matches the higher end of the company’s guided range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, CenterPoint has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision has been net zero. Notably, CenterPoint has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
CenterPoint belongs to the Zacks Utility - Electric Power industry. Another stock from the same industry, Xcel Energy (XEL), has gained 2.3% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Xcel reported revenues of $3.75 billion in the last reported quarter, representing a year-over-year change of +5.9%. EPS of $0.70 for the same period compares with $0.67 a year ago.
For the current quarter, Xcel is expected to post earnings of $0.59 per share, indicating a change of +1.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.2% over the last 30 days.
Xcel has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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