CenterPoint Energy, Inc. (CNP) reported third-quarter 2014 earnings of 33 cents per share, surpassing the Zacks Consensus Estimate by 6.5%. The upside resulted primarily from a higher customer count in spite of mounting expenses and a milder summer.
However, the reported number was 5.7% lower than the prior-year adjusted profit of 35 cents per share.
CenterPoint Energy’s total revenue for the reported quarter was $1,807 million, beating the Zacks Consensus Estimate by 6.2%. Quarterly revenues also increased 10.2% from $1,640 million in the year-ago period.
Operational Results
Total expenses rose 12.8% year over year to $1,574 million, primarily due to a rise in operation and maintenance, natural gas and depreciation and amortization expenses.
The company’s operating income decreased 4.5% year over year to $233 million in the reported quarter.
Interest expense in the reported quarter remained flat at $118 million as compared to the year-ago quarter.
In the reported quarter, customer count increased by roughly 2% from the prior-year quarter leading to an improved sales volume.
Segment Results
The Electric Transmission & Distribution segment reported an operating income of $232 million, down 2.9% year over year. Natural Gas Distribution reported an operating loss of $8 million as compared to the operating income of $5 million in the year-ago quarter. The Energy Services segment’s operating income was $6 million, up from $2 million a year ago. The operating income of the Other Operations segment was $3 million as compared to the operating loss of $2 million in the prior-year quarter.
Financial Condition
As of Sep 30, 2014, CenterPoint Energy reported cash and cash equivalents of $230 million, up from $208 million as of Dec 31, 2013.
Total long-term debt was $7,797 million as of Sep 30, 2014, down from $7,817 million at the end of Dec 31, 2013.
In the first nine months of 2014, the company’s net cash from operating activities was $1,124 million, lower than $1,132 million in the year-ago period.
In the reported quarter, CenterPoint Energy’s total capital expenditures increased to $358 million from $329 million in the year-ago period, primarily on the back of higher investments in both the Electric Transmission & Distribution and Natural Gas Distribution segments.
Guidance
CenterPoint Energy maintained its 2014 earnings guidance at $1.14–$1.21 per share. The company reaffirmed its 2014 earnings expectation from Midstream investments to be in the range of 42 cents to 45 cents per share. It has also reaffirmed its 2014 earnings forecast for its utility operations at 72 cents to 76 cents per share.
Other Peer Releases
Public Service Enterprise Group Inc. (PEG) reported third-quarter 2014 operating earnings of 77 cents per share, surpassing the Zacks Consensus Estimate of 75 cents by 2.7%.
PG&E Corp’s (PCG) adjusted operating earnings of $1.73 per share in the third quarter of 2014 comfortably surpassed the Zacks Consensus Estimate of $1.15 by 50.4%.
Edison International (EIX) reported solid third-quarter 2014 results wherein its adjusted earnings of $1.52 per share came ahead of the Zacks Consensus Estimate of $1.35 by 12.6%.
Zacks Rank
CenterPoint Energy currently has a Zacks Rank #4 (Sell).
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