CenterPoint Energy Earnings: Falls Below Expectations as Net Income Declines

S&P 500 (NYSE:SPY) component CenterPoint Energy Inc. (NYSE:CNP) reported a lower net income in third quarter, missing analysts’ estimates. CenterPoint Energy is a public utility holding company that operates electric transmission and distribution facilities, interstate pipelines, and natural gas gathering, processing, and treating facilities.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

CenterPoint Energy Inc. Earnings Cheat Sheet

Results: Net income for CenterPoint Energy Inc. fell to $10 million (2 cents per share) vs. $973 million ($2.27 per share) a year earlier. This is a decline of 99% from the year-earlier quarter.

Revenue: Fell 9.4% to $1.71 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: CenterPoint Energy Inc. fell short of the mean analyst estimate of 34 cents per share. It fell short of the average revenue estimate of $2.69 billion.

Quoting Management: “While this quarter’s financial results were impacted by two unusual items, our overall business performance was solid and in line with our expectations,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “Our regulated electric and gas distribution utilities achieved strong results and our midstream and energy services businesses performed well given the current market environment of low natural gas prices and minimal geographic price differentials.”

Key Stats:

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 2 cents, and in the first quarter, it was ahead by one cent.

Revenue has fallen for the past three quarters. In the second quarter, revenue declined 17% to $1.52 billion while the figure fell 19.4% in the first quarter from the year earlier.

Net income has increased more than twofold year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed more than sevenfold from the year-earlier quarter.

Looking Forward: Analysts have a more positive outlook about the company’s results for next quarter. The average estimate for fourth quarter is 23 cents per share, an increase from 22 cents sixty days ago. At $1.18 per share, the average estimate for the fiscal year has risen from $1.17 sixty days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Is AT&T’s Stock a Buy as iPhone Sales Soar?

Is the U.K. a Tech Company Tax Haven?

Should Apple’s CEO Be President of the United States?