CenterPoint Energy, Inc. (CNP) reported adjusted fourth-quarter 2014 earnings of 34 cents per share, surpassing the Zacks Consensus Estimate of 26 cents by 30.8%. The upside resulted primarily from a higher customer count in spite of mounting expenses and a milder winter. The reported number was 30.8% higher than the prior-year profit of 26 cents per share.
2014 adjusted earnings came in at $1.35 per share, beating the Street expectation of $1.19 and the year-ago adjusted number of $1.26 per share.
Total Revenue
CenterPoint Energy’s total revenues for the reported quarter were $2,372 million, beating the Zacks Consensus Estimate of $1,677 million by 41.4%. Quarterly revenues also increased 8.6% from $2,184 million in the year-ago period.
Revenues in 2014 stood at $9,226 million, surpassing the Zacks Consensus Estimate of $8,391 million and above the year-ago number of $8,106 million.
Operational Results
Total expenses rose 9% year over year to $2,151 million in the quarter, primarily due to a rise in operation and maintenance, natural gas and depreciation and amortization expenses.
The company’s operating income increased 4.7% year over year to $221 million in the reported quarter.
The customer count increased by roughly 2% from the prior-year quarter in the Electric Transmission & Distribution operation and 1% in the Natural Gas Distribution business. It also grew 3% at Energy Services.
Segment Results
The Electric Transmission & Distribution segment reported an operating income of $113 million, down from $119 million a yearago. Natural Gas Distribution reported an operating income of $103 million as compared to $94 million in the year-ago quarter. The Energy Services segment’s operating income of$9 millionwas up from $1 million a year ago. The Other Operations segment incurred an operating loss of$4 million, wider thananoperating loss of $3 million in the prior-year quarter.
Financial Condition
As of Dec 31, 2014, CenterPoint Energy reported cash and cash equivalents of $298 million, up from $208 million as of Dec 31, 2013.
Total long-term debt was $8,009 million as of Dec 31, 2014, up from $7,817 million at the end of Dec 31, 2013.
In 2014, the company’s net cash from operating activities was $1,397 million, lower than $1,613 million in the year-ago period.
In the reported quarter, CenterPoint Energy’s total capital expenditures increased to $415 million from $365 million in the year-ago period, primarily on the back of higher investments in the Natural Gas Distribution segment.
Guidance
CenterPoint issued 2015 earnings guidance in the range of 71 to 75 cents per share for its utility operations. For Midstream Investments, earnings are expected to be in the range of 29 cents to 35 cents per share. On the whole, CenterPoint expects full-year earnings to be $1.00 to $1.10 per share.
Other Peer Releases
Public Service Enterprise Group Inc. (PEG) or PSEG reported fourth-quarter 2014 operating earnings of 49 cents per share, surpassing the Zacks Consensus Estimate by a penny. Quarterly earnings remained on par with the year-ago figure.
PG&E Corp.’s (PCG) adjusted operating earnings per share of 53 cents in the fourth quarter of 2014 missed the Zacks Consensus Estimate of 54 cents.
Edison International (EIX) reported solid fourth-quarter 2014 results wherein its adjusted earnings of $1.06 per share came in ahead of the Zacks Consensus Estimate of 84 cents by an impressive 26.2%. The quarterly number also rose 30.9% from the year-ago figure of 79 cents per share.
Zacks Rank
CenterPoint Energy currently has a Zacks Rank #4 (Sell).
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