CenterPoint Energy, Inc. CNP is slated to report second-quarter 2024 results on Jul 30 before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 7.84%.
The company holds a four-quarter average earnings surprise of 3.13%. Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Note
The majority of the company’s service territories experienced warmer-than-normal temperature patterns for most of the second quarter. Such a weather pattern is expected to have boosted electricity demand for cooling purposes. This, in turn, might have contributed to CenterPoint Energy’s second-quarter revenues.
CenterPoint Energy, Inc. Price and EPS Surprise
CenterPoint Energy, Inc. price-eps-surprise | CenterPoint Energy, Inc. Quote
Adverse weather patterns, including a few flash floods, affected some parts of CNP’s service territories during the second quarter, which may have disrupted the company’s services in those areas. This is likely to have resulted in outages for some of its customers, impacting its overall revenues.
The Zacks Consensus Estimate for CenterPoint Energy’s second-quarter revenues is pegged at $1.87 billion, which indicates a 0.1% decline from the prior-year quarter’s recorded figure.
The severe weather conditions mentioned above may have damaged some of the company’s properties, thereby increasing its quarterly restoration costs. This, in turn, is likely to have hurt CNP’s second-quarter earnings.
Moreover, higher interest expenses may have an adverse impact on the company’s bottom-line performance.
Nevertheless, profitable returns from its earlier investments, as well as the company’s initiatives to reduce Operations and Maintenance (O&M) costs, may have boosted CenterPoint Energy’s overall earnings.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 33 cents per share, which implies a 17.9% improvement from the prior-year quarter’s level.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for CenterPoint Energy this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.
Earnings ESP: CNP has an Earnings ESP of -2.26%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, CenterPoint Energy carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Below, we have mentioned the following players from the same industry that have the right combination of elements to beat on earnings in the upcoming releases.
Xcel Energy Inc. XEL is slated to report its second-quarter 2024 results on Aug 1 before market open. It has an Earnings ESP of +2.77% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for XEL’s second-quarter earnings stands at 51 cents per share. The Zacks Consensus Estimate for XEL Energy’s second-quarter sales is pegged at $3.23 billion, which implies a 6.8% increase from that reported in the prior-year quarter.
The AES Corporation AES is expected to report its second-quarter 2024 results on Aug 1 after market close. It has an Earnings ESP of +10.20% and carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for AES’ second-quarter earnings stands at 33 cents per share, which suggests a 57.1% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for second-quarter sales is pegged at $3.08 billion, which implies a 1.7% increase from that reported in the prior-year quarter.
The Southern Company SO is slated to report its second-quarter 2024 results on Aug 1 before market open. It has an Earnings ESP of +0.38% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for SO’s second-quarter earnings stands at 91 cents per share, which suggests a 15.2% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for second-quarter sales is pegged at $6.26 billion, which implies a 9% increase from that reported in the prior-year quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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See Stocks Now >>Xcel Energy Inc. (XEL) : Free Stock Analysis Report
Southern Company (The) (SO) : Free Stock Analysis Report
CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report
The AES Corporation (AES) : 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.
