CenterPoint Energy, Inc. CNP will release its second-quarter 2015 financial results before the market opens on Aug 10, 2015. In the prior quarter, this utility reported a positive earnings surprise of 9.09%. Let’s see how things are shaping up at CenterPoint Energy prior to this announcement.
Factors to Consider
Ongoing economic developments in CenterPoint Energy’s operating territories have resulted in new construction across all its customer segments. This might be an indication of enhanced demand.
A significant portion of CenterPoint Energy’s revenue is derived from natural gas sales. Hence, the company’s revenue stream and results of operation are subject to fluctuating weather patterns and changes in natural gas usage.
Earnings Whispers
Our proven model does not conclusively show that CenterPoint Energy is likely to beat earnings estimates this quarter. That is because a stock needs to have both a positive Zacks Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here.
Zacks ESP: CenterPoint Energy has an Earnings ESP of -5.00%. This is because the Most Accurate estimate stands at 19 cents while the Zacks Consensus Estimate is at 20 cents.
Zacks Rank: Though the company’s Zacks Rank #3 increases the predictive power, this combined with -5.00% ESP makes an earnings beat unlikely this quarter.
We caution against stocks with a Zacks Rank #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Releases
DTE Energy Company DTE reported second-quarter 2015 operating earnings per share of 76 cents, lagging the Zacks Consensus Estimate of 84 cents by 9.5%.
Duke Energy Corporation DUK reported second-quarter 2015 adjusted earnings of 95 cents per share that fell short of the Zacks Consensus Estimate of $1.02 by 6.9%.
Dominion Resources Inc. D reported second-quarter 2015 operating earnings of 73 cents per share, surpassing the Zacks Consensus Estimate by a penny.
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