What's in Store for CenterPoint Energy (CNP) in Q3 Earnings?
CenterPoint Energy, Inc. CNP is slated to report third-quarter 2022 results on Nov 1, before the opening bell.
In the last reported quarter, the company delivered an earnings surprise of 2.08%. CenterPoint Energy has a trailing four-quarter earnings surprise of 9.64%, on average.
Factors to Note
The majority of CNP’s service territories experienced warmer-than-normal temperature patterns during the July-September 2022 quarter. Such a weather pattern is expected to have boosted electricity demand among the company’s customers for cooling purposes. This in turn must have boosted its top-line performance in the third quarter.
CenterPoint Energy, Inc. Price and EPS Surprise
CenterPoint Energy, Inc. price-eps-surprise | CenterPoint Energy, Inc. Quote
However, tornadoes along with hail storms affected some parts of CenterPoint Energy’s service territories, which may have disrupted this utility’s services in those areas. This is likely to have resulted in outages for its customers, which might have impacted revenues in the to-be-reported quarter.
The Zacks Consensus Estimate for CNP’s third-quarter revenues is pegged at $1.74 billion, suggesting a slip of 0.4% from the year-ago quarter’s reported figure.
The impact of severe weather conditions mentioned above might have damaged some of the utility’s properties, thereby pushing up its quarterly costs for restoration work. This, in turn, might have hurt earnings in the soon-to-be-reported quarter.
Nevertheless, a favorable rate recovery as well as a warmer-than-normal weather pattern is projected to have aided CNP’s Q3 bottom-line performance.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 31 cents per share, indicating a decline of 6.1% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for CenterPoint Energy this time. 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.
The company has an Earnings ESP of -1.61% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are three utilities you may want to consider as these also have the right combination of elements to post an earnings beat this season:
NextEra Energy NEE has an Earnings ESP of +0.63% and a Zacks Rank #2. The Zacks Consensus Estimate for NextEra Energy’s third-quarter revenues is pegged at $6.35 billion, suggesting growth of 45.4% from the year-ago quarter.
The Zacks Consensus Estimate for NEE’s third-quarter earnings is pegged at 79 cents per share, indicating growth of 5.3% from the prior-year reported figure.
Ameren AEE has an Earnings ESP of +1.41% and a Zacks Rank #3. The Zacks Consensus Estimate for its third-quarter earnings is pegged at $1.72 per share, indicating an improvement of 4.2% from the prior-year reported figure.
Ameren boasts a long-term earnings growth rate of 7.2%. The Zacks Consensus Estimate for AEE’s third-quarter sales is pegged at $1.90 billion, suggesting a 5% increase from the prior-year reported figure.
Pinnacle West Capital PNW has an Earnings ESP of +1.66% and a Zacks Rank #2. The Zacks Consensus Estimate for its third-quarter earnings, pegged at $2.62 per share, implies a decline of 12.7% from the prior-year quarter’s reported figure.
PNW has a four-quarter earnings surprise of 115.48%. The Zacks Consensus Estimate for Pinnacle’s third-quarter sales suggests a growth rate of 0.6% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ameren Corporation (AEE) : Free Stock Analysis Report
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report
Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
