CenterPoint Energy (CNP) to Post Q2 Earnings: What's in Store?
CenterPoint Energy, Inc. CNP is slated to report second-quarter 2023 results on Jul 27, before the opening bell.
In the last reported quarter, the company delivered an earnings surprise of 4.17%. CNP has a trailing four-quarter average earnings surprise of 3.67%.
Factors to Note
The majority of the company’s service territories experienced warmer-than-normal temperature patterns for most of the second quarter. Such a weather pattern is expected to have boosted electricity demand for cooling purposes in the spring. This, in turn, might have contributed favorably to CenterPoint Energy’s top-line performance in the soon-to-be-reported quarter.
Moreover, favorable rate hikes, along with customer growth observed in the prior quarters, are likely to have boosted the company’s revenues.
CenterPoint Energy, Inc. Price and EPS Surprise
CenterPoint Energy, Inc. price-eps-surprise | CenterPoint Energy, Inc. Quote
However, adverse weather pattern including strong winds, a few tornedos as well as wildfires affected some parts of CNP’s service territories during the second quarter that might have disrupted the company’s services in those areas. This is likely to have resulted in outages for its customers, which might have impacted its overall revenues.
The Zacks Consensus Estimate for CenterPoint Energy’s second-quarter revenues is pegged at $1.94 billion, indicating a 0.4% year-over-year decline.
The severe weather conditions, mentioned above, might have damaged some of the company’s properties, thereby increasing its quarterly restoration costs. This, in turn, is likely to have hurt CNP’s second-quarter earnings.
However, tax benefits, benefits of Vectren integration and rising electricity demand might have neutralized the aforementioned impacts on the company’s overall bottom-line performance.
The Zacks Consensus Estimate for CNP’s second-quarter earnings is pegged at 31 cents per share, flat year over year.
What the Zacks Model Unveils
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 chances of an earnings beat. However, that is not the case here as you will see below.
Earnings ESP: The company’s Earnings ESP is -8.07%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CNP carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are three Utility players that you may want to consider as these have the right combination of elements to come up with an earnings beat this reporting cycle:
Ameren AEE has an Earnings ESP of +11.82% and a Zacks Rank #3 at present. The stock has a four-quarter average earnings surprise of 4.70%.
Ameren boasts a long-term earnings growth rate of 6.4%. The Zacks Consensus Estimate for AEE’s second-quarter earnings and sales is pegged at 70 cents per share and $1.73 billion, respectively.
Public Service Enterprise Group PEG has an Earnings ESP of +15.20% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter earnings is pegged at 63 cents per share, implying a 1.6% decrease from that reported in the prior-year quarter.
The consensus mark for PEG’s sales is pinned at $2.03 billion. The company has a four-quarter average earnings surprise of 4.33%.
Edison International EIX has an Earnings ESP of +4.63% and a Zacks Rank #3 at present. The consensus estimate for second-quarter earnings is pinned at 91 cents per share, indicating a 3.2% decline year over year.
Edison International boasts a four-quarter average earnings surprise of 3.70%. The consensus mark for EIX’s second-quarter sales is pegged at $4.26 billion, indicating growth of 6.4% from that recorded in the prior-year quarter.
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Ameren Corporation (AEE) : Free Stock Analysis Report
Edison International (EIX) : Free Stock Analysis Report
Public Service Enterprise Group Incorporated (PEG) : Free Stock Analysis Report
CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report
