CenterPoint Energy, Inc. CNP is set to report first-quarter 2020 results on May 7, before the opening bell.
In the last reported quarter, the company delivered a positive earnings surprise of 25%. Moreover, it surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed in the remaining one, the average positive surprise being 13.29%.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
CenterPoint Energy's major service territories experienced above-normal winter temperatures throughout the first quarter of 2020. This is likely to have marred its first-quarter revenues since warm temperature in winter means less usage of heating appliances.
Further, the company's service territories witnessed a notable number of storms and tornadoes in the first quarter, which may have resulted in increasing power outages and disruptions. In line with the aforementioned events, the Zacks Consensus Estimate for quarterly revenues is pegged at $2,332 million, suggesting a decline of 34% from the year-ago quarter’s reported figure.
CenterPoint Energy's prudent efforts to manage operations and management (O&M) expenses might have a favorable impact on its bottom line for the soon-to-be-reported quarter. However, during the last week of March, it was announced that the company is temporarily suspending natural gas disconnections for nonpayment as well as waiving late fees for residential and business customers affected by the COVID-19 emergency. The effects of these initiatives can be expected to duly get reflected in the soon-to-be-reported results.
Currently the Zacks Consensus Estimate for first-quarter earnings is pegged at 45 cents per share, suggesting a 2.2% fall from the prior-year quarter’s reported figure.
CenterPoint Energy, Inc. Price and EPS Surprise
CenterPoint Energy, Inc. price-eps-surprise | CenterPoint Energy, Inc. Quote
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. But it is not the case here.
Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CenterPoint Energy currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some players from the Utilities sector that have the right combination of elements to post an earnings beat this reporting cycle.
Algonquin Power & Utilities Corp. AQN has an Earnings ESP of +1.59% and a Zacks Rank #2. The company will announce first-quarter 2020 earnings on May 7.
Consolidated Edison ED has an Earnings ESP of +0.52% and a Zacks Rank #3. The company will announce first-quarter 2020 earnings on May 7.
New Jersey Resources Corporation NJR has an Earnings ESP of +3.86% and a Zacks Rank #3. The company will announce fiscal 2020 second-quarter earnings on May 8.
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