CenterPoint Energy (CNP) Beats on Q2 Earnings, Ups EPS View
CenterPoint Energy, Inc. CNP reported second-quarter 2021 adjusted earnings of 36 cents per share, which surpassed the Zacks Consensus Estimate of 25 cents by 44%. The bottom line also improved 71.4% from the year-ago quarter’s figure.
The company registered GAAP earnings of 37 cents per share compared with 11 cents recorded in the prior-year quarter.
The year-over-year upside can be attributed to favorable income tax benefit along with favorable rate recovery.
CenterPoint Energy, Inc. Price, Consensus and EPS Surprise
CenterPoint Energy, Inc. price-consensus-eps-surprise-chart | CenterPoint Energy, Inc. Quote
Revenues
CenterPoint Energy’s total revenues in the quarter were $1,742 million, which exceeded the Zacks Consensus Estimate of $1,557 million by 11.9%. Moreover, the reported figure came in 10.6% higher than the prior-year quarter’s figure.
Higher contribution from the utility segment contributed to top-line growth.
Operational Results
Total expenses during the second quarter escalated 7.9% to $1,446 million.
The company’s operating income surged 26% year over year to $296 million in the quarter.
Interest expense and other finance charges declined to $119 million from $128 million in the year-ago quarter.
Financial Condition
As of Jun 30, 2021, CenterPoint Energy had cash and cash equivalents of $136 million, down from $147 million as of Dec 31, 2020.
Total long-term debt was $15,853 million as of Jun 30, 2021, compared with $11,521 million as of Dec 31, 2020.
At the end of second-quarter 2021, the company’s net cash outflow from operating activities was $1,076 million against cash inflow of $1,181 million at second-quarter 2020-end.
Further, CenterPoint Energy’s total capital expenditure was $1,383 million at the end of second quarter, up from $1,278 million in the year-ago period..
2021 Guidance
CenterPoint Energy raised its 2021 earnings guidance. The company currently expects to generate earnings in the range of $1.25-$1.27 compared with the prior guidance range of $1.24-$1.26 per share.
The Zacks Consensus Estimate for current-year earnings is pegged at $1.47 per share, which lies much above the company’s newly 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
American Electric Power AEP reported second-quarter 2021 adjusted earnings per share of $1.18, which exceeded the Zacks Consensus Estimate of $1.14 by 3.5%.
NextEra Energy NEE reported second-quarter 2021 adjusted earnings of 71 cents per share, which beat the Zacks Consensus Estimate of 67 cents by 5.6%.
DTE Energy Company DTE reported second-quarter 2021 operating earnings per share (EPS) of $1.70, which beat the Zacks Consensus Estimate of $1.44 by 18.1%.
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