CenterPoint Energy Inc (CNP) Reports Q3 Earnings and Raises Full Year 2023 Guidance
CenterPoint Energy Inc (NYSE:CNP) reported GAAP and non-GAAP earnings of $0.40 per diluted share for Q3 2023.
The company increased its non-GAAP EPS guidance range for 2023 from $1.48-$1.50 to $1.49-$1.51, representing a 9% growth target at the midpoint over 2022 actual results.
CenterPoint Energy Inc (NYSE:CNP) also increased its 10-year capital plan to $43.9 billion, a $500 million increase through 2030.
The company initiated 2024 non-GAAP EPS guidance range of $1.61-$1.63, which represents an 8% growth over the increased 2023 midpoint.
On October 26, 2023, CenterPoint Energy Inc (NYSE:CNP) released its earnings report for the third quarter of 2023. The company reported income available to common shareholders of $256 million, or $0.40 per diluted share on a GAAP basis. Non-GAAP EPS for the third quarter 2023 was also $0.40, a 25% increase to the comparable quarter of 2022. These strong third quarter results were primarily driven by growth and regulatory recovery, which contributed $0.09 per share of favorability, and weather, which contributed another $0.05 per share of favorability as compared to the third quarter of 2022.
Financial Performance and Future Outlook
Despite the challenges of increased interest expense over the comparable quarter of 2022, the company's management team has continued to meet or exceed expectations. Looking ahead to the final quarter of 2023 and into 2024, the company anticipates continued headwinds of higher interest rates and persistent inflation. However, it plans to manage through these conditions, targeting an earnings growth rate that is amongst the top in the sector. This includes an 8% non-GAAP EPS growth target for 2024, and mid-to-high end of 6-8% growth target annually thereafter through 2030.
Capital Plan and Guidance
CenterPoint Energy Inc (NYSE:CNP) announced an increase to its customer-driven 10-year capital plan by an incremental $500 million through 2030. This will include approximately $200 million in 2023 and approximately $300 million in 2024 and 2025. The company's focus continues to be on delivering industry-leading growth each year, while over-delivering for its customers, investors, and other stakeholders.
Non-GAAP EPS Guidance
Given CenterPoints divestiture of its remaining midstream investments during 2022, CenterPoint will be presenting a consolidated non-GAAP EPS guidance range for 2023. The 2023 and 2024 non-GAAP EPS guidance ranges also consider assumptions for certain significant variables that may impact earnings, such as customer growth and usage including normal weather, throughput, recovery of capital invested, effective tax rates, financing activities and related interest rates, and regulatory and judicial proceedings.
Reconciliation of Consolidated Income
The company provided a detailed reconciliation of consolidated income available to common shareholders and diluted earnings per share (GAAP) to non-GAAP income and non-GAAP diluted earnings per share for the quarters ended September 30, 2023, and September 30, 2022. The reconciliation tables provide a clear understanding of the company's financial performance by providing an additional meaningful and relevant comparison of current and anticipated future results across periods.
CenterPoint Energy Inc (NYSE:CNP) is an energy delivery company with electric transmission and distribution, power generation, and natural gas distribution operations that serve more than 7 million metered customers in Indiana, Louisiana, Minnesota, Mississippi, Ohio, and Texas. As of September 30, 2023, the company owned approximately $39 billion in assets.
Explore the complete 8-K earnings release (here) from CenterPoint Energy Inc for further details.
This article first appeared on GuruFocus.
