CenterPoint Energy Inc. Earnings Cheat Sheet: Exceeds Forecasts with Boost of Profit Rise

S&P 500 (NYSE:SPY) component CenterPoint Energy Inc. (NYSE:CNP) reported net income above Wall Street’s expectations for the third quarter. 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.

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CenterPoint Energy Earnings Cheat Sheet for the Third Quarter

Results: Net income for the diversified utilities company rose to $973 million ($2.27 per share) vs. $123 million (29 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year earlier quarter.

Revenue: Fell 1.4% to $1.88 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CNP reported adjusted net income of 38 cents per share. By that measure, the company beat the mean estimate of 29 cents per share. It fell short of the average revenue estimate of $2.17 billion.

Quoting Management: “This was a significant quarter for our company,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “We resolved the long-standing proceeding arising from the restructuring of the electric industry in Texas. As a result, we expect to issue an additional $1.695 billion in transition bonds later this year or early next year, and have booked $811 million in net income this year and will recognize another $258 million over time. Operationally, our regulated electric and natural gas utilities reported solid results and our field services unit continued to realize growth from the investments we made in the Haynesville and Fayetteville shales. We continue to look for opportunities to invest across our portfolio of electric and natural gas businesses and build value for our shareholders.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 46.9% and in the first quarter, the figure rose 29.8%.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 24 cents versus a mean estimate of net income of 23 cents per share.

Revenue fell last quarter after seeing a rise the quarter before. Revenue rose 4.6% to $1.84 billion in the second quarter from the year earlier.

Looking Forward: Expectations for the fourth quarter have not changed from 25 cents. The average estimate hasn’t changed from $1.11 per share for the fiscal year.

Competitors to Watch: Integrys Energy Group, Inc. (NYSE:TEG), SCANA Corporation (NYSE:SCG), Atmos Energy Corporation (NYSE:ATO), OGE Energy Corp. (NYSE:OGE), Dominion Resources, Inc. (NYSE:D), Calpine Corporation (NYSE:CPN), Ameren Corporation (NYSE:AEE), The Empire District Electric Co. (NYSE:EDE), NiSource Inc. (NYSE:NI), and NorthWestern Corporation (NYSE:NWE).

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(Source: Xignite Financials)