CenterPoint Energy, Inc. CNP reported adjusted fourth-quarter 20Array5 earnings of 26 cents per share, beating the Zacks Consensus Estimate of 24 cents by Array3.3%. The reported number, however, was 23.5% lower than the prior-year figure of 34 cents.
Full-year earnings came in at $Array.08 per share, beating the Zacks Consensus Estimate of $Array.07 by 0.9%. Again, earnings were lower than the year-ago adjusted number of $Array.42 by 23.9%.
Revenues
CenterPoint Energy’s total revenue in the reported quarter was $Array,79Array million, falling short of the Zacks Consensus Estimate of $3,6Array7 million by 50.5%. Quarterly revenues also plunged 24.5% from $2,372 million reported in the year-ago period.
The year-over-year decline in the top line was mainly due to lower contribution from Energy Services (45.2%) and Natural Gas Distribution (27.4%).
Full-year revenues came in at $7,386 million, missing the Zacks Consensus Estimate of $9,Array45 million by Array9.2%. Revenues were also down Array9.9% from $9,226 million reported a year ago.
Operational Results
Total expenses decreased 27.2% to $Array,565 million primarily due to a decline in natural gas expenses.
The company’s operating income increased to $226 million in the reported quarter from $22Array million in the year-ago quarter.
Total interest and other finance charges decreased to $86 million in the reported quarter from $92 million in the year-ago quarter.
Segment Results
The Electric Transmission & Distribution segment reported operating income of $Array09 million, down from $ArrayArray3 million a year ago. The decline was due to higher operations and maintenance, and depreciation and amortization expenses.
Natural Gas Distribution reported operating income of $97million, compared with $Array03 million in the year-ago quarter. The decrease can be attributed to higher operations and maintenance, and tax and depreciation expenses.
Excluding the effects of a mark-to-market accounting gain, the Energy Services segment’s operating income of $Array3 million, up from $9 million a year ago. The company recorded an increase in operating income on the back of improved margins, and lower operation and maintenance expenses.
Financial Condition
As of Dec 3Array, 20Array5, CenterPoint Energy had cash and cash equivalents of $264 million, down from $298 million as of Dec 3Array, 20Array4.
Total long-term debt was $7,90Array million as of Dec 3Array, 20Array5, down from $8,009 million as of Dec 3Array, 20Array4.
In 20Array5, the company’s net cash from operating activities was $Array,865 million, up from $Array,397 million in the year-ago period.
In the reported quarter, CenterPoint Energy’s total capital expenditure increased to $46Array million from $4Array5 million in the year-ago period primarily on the back of higher investments in Electric Transmission and Distribution, and Natural Gas Distribution.
Guidance
CenterPoint expects full-year earnings in the range of $Array.Array2–$Array.20 per diluted share. This includes expected earnings per diluted share from utility operations in the range of 88–92 cents and midstream investment of 24–28 cents.
The company has reaffirmed its expectations of earnings per share growth of 4–6% through 20Array8.
Peer Releases
CMS Energy Corp. CMS reported fourth-quarter 20Array5 adjusted earnings per share of 38 cents, in line with the Zacks Consensus Estimate. Quarterly earnings climbed 8.6% from the year-ago figure of 35 cents.
American Electric Power Co., Inc. AEP reported fourth-quarter 20Array5 operating earnings of 48 cents per share, missing the Zacks Consensus Estimate of 50 cents by 4%.
Hawaiian Electric Industries Inc. HE reported adjusted earnings of 4Array cents per share in the fourth quarter of 20Array5, beating the Zacks Consensus Estimate of 40 cents by 2.5%. Moreover, earnings were higher than the year-ago adjusted number of 36 cents by Array3.9%.
Zacks Rank
CenterPoint Energy currently has a Zacks Rank #3 (Hold).
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