CenterPoint Energy Inc.
), fourth-quarter 2012 adjusted earnings of 28 cents per share
surpassed the Zacks Consensus Estimate of 20 cents per share as
well as the prior-year figure of 27 cents per share.
AES CORP (AES): Free Stock Analysis Report
CMS ENERGY (CMS): Free Stock Analysis Report
CENTERPOINT EGY (CNP): Free Stock Analysis
DTE ENERGY CO (DTE): Free Stock Analysis
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Including mark-to-market gains from marketable securities of 2
cents and indexed debt securities of 1 cent, net income came at
31 cents versus 27 cents in the year-ago quarter.
For full-year 2012, CenterPoint Energy delivered adjusted
earnings of $1.25 per share, which breezed past the Zacks
Consensus Estimate of $1.20 but fell below $1.27 earned in 2011.
Including step acquisition gain of 21 cents, goodwill impairment
charge of 59 cents, mark-to-market losses -- natural gas
derivative contracts of 2 cents, mark-to-market gains from
marketable securities of 23 cents and mark-to-market losses from
indexed debt securities of 11 cents -- the company reported net
income of 97 cents in 2012, down from $1.37 earned in 2011.
CenterPoint Energy's total revenue fell 0.3% year over year to
$2.14 billion in the quarter. The downside was due to a decrease
in contribution from natural gas distribution as well as
competitive natural gas sales and services. It also lagged the
Zacks Consensus Estimate of $2.4 billion.
Full-year revenue declined 11.8% year over year to $7.5 billion.
It was also below of the Zacks Consensus Estimate of $7.9
Quarterly Operational Performance
Total Expense decreased 2.3% year over year to $1.8 billion.
The magnitude in decrease in expense was more than the decline in
revenue, inducing year-over-year operating income improvement of
Quarterly Segment Results
Electric Transmission & Distribution
During the quarter, the segment generated operating income of $99
million, up 6.5% year over year. The operating income includes
$64 million from the regulated electric transmission &
distribution utility operations ("TDU") and $35 million from
Operating income at TDU was up 3.2% year over year, driven by
solid customer growth and recognition of deferred equity returns
associated with true-up proceeds. However, higher net
transmission costs were partial offset.
Natural Gas Distribution
Segment operating income was $91 million up 24.6% year over year.
The upside reflects normal winter weather, rate changes, customer
growth and decline in operation and maintenance expenses.
Competitive Natural Gas Sales and Services
Segment operating income of $12 million increased fourfold year
over year. The improvement was driven by the termination of
uneconomic transportation contracts and higher retail sales
customers and volume.
The segment generated operating income of $47 million, down 9.6%
from the prior-year quarter. The downside was due to contract
expirations, decline in commodity prices, and lower system
The Field Services segment reported an operating income of $61
million in the quarter, up 15.1% year over year. The upside
reflects timing of revenue recognition from contracts with
throughput commitments, higher gathering services and retained
gas volumes, and added income from acquisitions.
The segment broke even in the fourth quarter.
CenterPoint Energy exited 2012 with cash and cash equivalents of
$646 million, much higher than $220 million at 2011 end.
Long-term debt declined 3.3% over 2011 end to $8.4 billion at
Cash from operations declined 1.5% year over year to $1.86
billion in 2012.
Capital expenditure inched down 0.3% year over year to $1.2
billion in 2012.
The company expects to generate earnings between $1.22 to $1.30
per share in 2013.
The Board approved a quarterly dividend of 20.75 cents per share
payable on Mar 8, 2013, to shareholders of record on close of Feb
Performance of Few Other Eclectic Power
The AES Corporation
) posted fourth-quarter 2012 earnings of 32 cents per share,
6.67% above the Zacks Consensus Estimate and 60% ahead of the
CMS Energy Corporation
) announced earnings for the fourth quarter 2012 of 25 cents per
share, beating the Zacks Consensus Estimate of 24 cents. The
results were also above the year-ago earnings of 15 cents per
DTE Energy Company
) reported fourth-quarter operating earnings of 85 cents per
share, in line with the Zacks Consensus Estimate. However,
earnings were below the year-ago figure of 89 cents per share.
CenterPoint Energy carries a Zacks Rank #3 (Hold).