CenterPoint Energy Inc. Earnings: Revenue Ticks Lower

S&P 500 (NYSE:SPY) component CenterPoint Energy Inc. (NYSE:CNP) posted a decrease in profit as revenue declined. 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 First Quarter

Results: Net income for CenterPoint Energy Inc. fell to $147 million (34 cents per share) vs. $148 million (35 cents per share) a year earlier. This is a decline of 0.7% from the year-earlier quarter.

Revenue: Fell 19.4% to $2.08 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: CenterPoint Energy Inc. beat the mean analyst estimate of 33 cents per share. It fell short of the average revenue estimate of $2.69 billion.

Quoting Management: “Despite extremely mild winter weather and low natural gas prices, the company reported solid earnings for the quarter,” said David M. McClanahan, president and chief executive officer of CenterPoint Energy. “The benefits of our diversified portfolio of electric and natural gas businesses were evident this quarter and the fundamentals of our business units remain strong. We continue to look for opportunities to invest in each of our businesses where we believe we can build value for our shareholders.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 7 cents in the fourth quarter of the last fiscal year, by 8 cents in the third quarter of the last fiscal year, and by one cent in the second quarter of the last fiscal year.

The company’s net income has fallen for two quarters in a row. In the fourth quarter of the last fiscal year, net income fell 5.6% from the year-earlier quarter.

Margins rose in the fourth quarter of the last fiscal year after falling the quarter before. Gross margin grew 5.7 percentage points from the year-earlier quarter to 31.7%. In the third quarter of the last fiscal year, the figure rose 1.4 percentage points to 26.9% from the year earlier quarter.

Over the last five quarters, revenue has fallen an average of 5.7% year-over-year. The biggest drop came in the most recent quarter, when revenue fell 19.4% from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 24 cents a share to 23 cents over the last ninety days. The average estimate for the fiscal year is $1.15 per share, down from $1.20 ninety days ago.

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

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