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CenterPoint Energy Beats on Q3 Earnings, Ups Guidance

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CenterPoint Energy, Inc.CNP reported adjusted third-quarter 2015 earnings of 34 cents per share, missing the Zacks Consensus Estimate by 13.3%. The reported number was 3% lower than the prior-year figure of 33 cents per share.

CenterPoint Energy Inc. (CNP) - Earnings Surprise | FindTheCompany

Revenues

CenterPoint Energy's total revenue in the reported quarter was $1,630 million, trailing behind the Zacks Consensus Estimate of $1,801 million by 9.5%. Quarterly revenues also decreased 9.8% from $1,807 million reported in the year-ago period.

The year-over-year decline in the top line was due to lower contribution from Energy Services (25.2%), Natural Gas Distribution (6%) and Electric Transmission & Distribution (1.4%).

Operational Results

Total expenses decreased 13.3% year over year to $1,365 million primarily due to a decline in natural gas expenses.

The company's operating income increased to $265 million in the reported quarter from $233 million in the year-ago quarter.

Total interest and other finance charges were flat year over year at $88 million.

Segment Results

The Electric Transmission & Distribution segment reported operating income of $244 million, up from $232 million a year ago. The upside was due to favorable weather, higher net transmission and distribution related revenues, continually strong customer growth, and lower operations and maintenance expense, partially offset by the absence of a one-time energy efficiency remand bonus of $8 million received in the third quarter of 2014, and reduced equity return related to true-up proceeds.

Natural Gas Distribution reported operating income of $11 million compared with operating loss of $8 million in the year-ago quarter. The increase can be attributed to the timing of the Minnesota Conservation Improvement Program incentive, rate relief and increased economic activity across the company's service area, including customer growth, and lower operations and maintenance expense, partially offset by higher tax and depreciation expenses.

Excluding the effects of a mark-to-market accounting gain, the Energy Services segment's operating income of $2 million compared favorably to an operating loss of $7 million a year ago. The company recorded operating income on the heels of improved margins, and reduced operation and maintenance expenses.

Financial Condition

As of Sep 30, 2015, CenterPoint Energy had cash and cash equivalents of $227 million, down from $298 million as of Dec 31, 2014.

Total long-term debt was $7,662 million as of Sep 30, 2015, down from $8,009 million as of Dec 31, 2014.

In the first nine months of 2015, the company's net cash from operating activities was $1,518 million, up from $1,124 million in the year-ago period.

In the reported quarter, CenterPoint Energy's total capital expenditure increased to $424 million from $358 million in the year-ago period primarily on the back of higher investments in Electric Transmission and Distribution, and Natural Gas Distribution.

Guidance

CenterPoint increased its full-year earnings guidance to $1.05 - $1.10 per diluted share compared to the previous guidance of $1.00 to $1.10 per share.

The company reaffirmed earnings per share growth of 4-6% through 2018.

Other Releases

Sempra Energy SRE posted third-quarter 2015 adjusted earnings of $1.00 per share, beating the Zacks Consensus Estimate of 83 cents by 20.5%.

PG&E Corp.'s PCG adjusted operating earnings per share of 84 cents in the third quarter of 2015 missed the Zacks Consensus Estimate of 92 cents by 8.7%.

CMS Energy Corp. CMS reported third-quarter 2015 adjusted earnings per share of 53 cents, surpassing the Zacks Consensus Estimate of 49 cents by 8.2%.

Zacks Rank

CenterPoint Energy currently has a Zacks Rank #4 (Sell).

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CENTERPOINT EGY (CNP): Free Stock Analysis Report

CMS ENERGY (CMS): Free Stock Analysis Report

SEMPRA ENERGY (SRE): Free Stock Analysis Report

PG&E CORP (PCG): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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