CenterPoint Energy, Inc. (CNP) , with its rising earnings estimates and strong ROE, makes a good pick in the utility space. It is registering growth in customer volumes and investing substantially to expand operations to meet increasing demand. Let's focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment. Growth Projections The Zacks Consensus Estimate for 2024 and 2025 earnings per share is pegged at $1.62 and $1.75, indicating growth of 8% and 7.6%, respective ...

Group 1 - CenterPoint Energy (CNP) has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Southern Co. (SO) has a Zacks Rank of 3 (Hold) [3] - Value investors analyze various traditional metrics to assess whether a company is undervalued, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] - CNP has a forward P/E ratio of 18.95 and a PEG ratio of 2.71, while SO has a forward P/E of 20.13 and a PEG ratio of 2.90, suggesting CNP may be more attractive [5] Group 2 - CNP's P/B ratio is 1.97, compared to SO's P/B of 2.47, indicating a better valuation relative to book value [6] - CNP has a Value grade of B, while SO has a Value grade of D, further supporting the notion that CNP is the better option for value investors [6]

It has been about a month since the last earnings report for CenterPoint Energy (CNP) . Shares have added about 0.2% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is CenterPoint due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. CenterPoint Energy's Q1 Earnings Top ...

4 ~$2.2B to $2.7B Capital Investment Plan Range (2025-2027)(1) Electric System Hardening and Modernization (~$1.7B - $2.1B) • Replace and upgrade assets most susceptible to severe weather or other disruptions • Includes transmission system hardening, distribution circuit rebuilds, and strategic undergrounding Physical Security (~$35MM) • Enhance security at critical substations • Includes asset protection and security monitoring system upgrades Wildfire Mitigation (~$140MM) • Expand wildfire risk modeling a ...

Financial Data and Key Metrics Changes - The company reported a non-GAAP EPS of $0.55 for Q1 2024, compared to $0.50 in Q1 2023, indicating a strong start to the year [143] - The growth in rate recovery contributed $0.09 to EPS, primarily driven by ongoing recovery from various interim mechanisms [144] - The company reaffirmed its non-GAAP EPS target of 8% growth for 2024 and mid-to-high end of 6% to 8% annually through 2030 [5][141] Business Line Data and Key Metrics Changes - The company has made good progress on its $250 million ATM equity program, completing approximately 75% of equity sales year-to-date [3] - The Texas Gas rate case settlement is expected to result in an annual revenue requirement increase of approximately $5 million, with a minimal impact on customer bills [123] Market Data and Key Metrics Changes - The Houston area has seen strong organic growth, with an average annual customer growth of 1% to 2% over the long term, supported by significant job creation [146] - The company anticipates closing the sale of its Louisiana and Mississippi Gas LDCs, expected to result in after-tax cash proceeds of approximately $1 billion [8] Company Strategy and Development Direction - The company is focused on enhancing grid resiliency through a $2.2 billion to $2.7 billion investment plan over three years, aimed at improving customer outcomes from severe system events [118][115] - The company plans to continue its emphasis on operational and maintenance discipline, which has been a differentiating factor for sustainable growth [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of financial metrics as the impact of Winter Storm Uri rolls off, expecting improvements in credit metrics over the next few years [55][56] - The company highlighted the dynamic growth environment in Texas, particularly in electric sales, driven by residential and industrial load growth [58] Other Important Information - The company is pursuing various state and federal incentives to support its capital investment plans, including potential federal loan programs [25][63] - The company has filed for a rate case in Ohio Gas, expected to be filed in August 2024 [138] Q&A Session Summary Question: Can you discuss the $500 million upside in terms of accretion versus the 10% rate base growth? - Management indicated that the $500 million of additional capital will be included in the capital investment plan when it can be efficiently executed, financed, and recovered [15][119] Question: How are you thinking about options for refinancing needs? - Management is pleased with current credit metrics and is pursuing various financing alternatives, including DOE Loan Program dollars [26][27] Question: Can you provide an update on the Indiana Electric rate case? - Management mentioned that hearings have been slightly delayed to explore potential settlements, with a final decision expected in Q4 [132] Question: What is the timeline for the Resiliency Plan approval? - The approval timeline is expected to be around six months, with a final decision anticipated by the end of the calendar year [88] Question: What are the current earned or regulated ROEs? - Management noted that regulatory lag has been reduced, with historical averages around 150 basis points, and will provide a more normalized view post-rate case [89]

CenterPoint Energy, Inc. (CNP) reported first-quarter 2024 adjusted earnings of 55 cents per share, which surpassed the Zacks Consensus Estimate of 51 cents by 7.8%. The bottom line improved 10% from the year-ago quarter’s figure of 50 cents per share.The year-over-year improvement can be attributed to regulatory recovery and favorable weather impacts.The company registered GAAP earnings of 55 cents per share, which increased 12.2% from the prior-year quarter’s figure of 49 cents per share.Q1 RevenuesCNP ge ...

CenterPoint Energy (CNP) reported $2.62 billion in revenue for the quarter ended March 2024, representing a year-over-year decline of 5.7%. EPS of $0.55 for the same period compares to $0.50 a year ago.The reported revenue represents a surprise of -6.98% over the Zacks Consensus Estimate of $2.82 billion. With the consensus EPS estimate being $0.51, the EPS surprise was +7.84%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determi ...

CenterPoint Energy (CNP) came out with quarterly earnings of $0.55 per share, beating the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.50 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.84%. A quarter ago, it was expected that this energy delivery company would post earnings of $0.32 per share when it actually produced earnings of $0.32, delivering no surprise.Over the last four quarters, the ...

millions EPS millions EPS millions EPS millions EPS Consolidated income (loss) available to $ 313 $ 0.49 $ 106 $ 0.17 $ 256 $ 0.40 192 $ 0.3 $ common shareholders and diluted EPS | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |---------------------------------------------------------------------------------------|-------|-------|--------|-------|-------|-------|--------|-------|--------|-------|--------|-------|-------|-------|-------| | ZENS-related mark-t ...

Financial Performance - Revenues for the three months ended March 31, 2024, increased to $901 million, up from $792 million in the same period of 2023, representing a growth of approximately 13.8%[183] - Operating income remained stable at $190 million for the three months ended March 31, 2024, compared to $189 million in the same period of 2023[183] - Net income for the three months ended March 31, 2024, was $99 million, a decrease from $108 million in the same period of 2023, reflecting a decline of approximately 8.3%[183] - CenterPoint Energy reported a net income of $264 million for Q1 2024, compared to $212 million in Q1 2023, reflecting a 24.5% increase[210] - Total revenues for Q1 2024 were $1.512 billion, down from $1.717 billion in Q1 2023, representing a decrease of 12%[210] - Utility revenues decreased to $1.500 billion in Q1 2024 from $1.707 billion in Q1 2023, a decline of 12.1%[210] - Operating income increased to $370 million in Q1 2024, up from $313 million in Q1 2023, marking an increase of 18.2%[210] - CenterPoint Energy's total expenses decreased to $1,142 million in Q1 2024 from $1,404 million in Q1 2023, a decrease of $262 million[255] Debt and Financing - CenterPoint Energy issued $400 million in new debt during the three months ended March 31, 2024, with a 5.15% interest rate due in 2034[193] - The company repaid $22 million of existing debt during the same period, including the redemption of first mortgage bonds[193] - The weighted average interest rate on revolving credit facilities was 5.49% as of March 31, 2024, slightly down from 5.54% at the end of 2023[204] - CenterPoint Energy remained compliant with all financial debt covenants as of March 31, 2024[203] - The company reported a net change in commercial paper outstanding of $1.472 billion for the three months ended March 31, 2024, compared to $853 million in 2023, reflecting a significant increase in short-term financing[265] Assets and Equity - CenterPoint Energy's total assets increased to $17,623 million as of March 31, 2024, compared to $17,086 million as of March 31, 2023, marking an increase of approximately 3.1%[185] - The company had total assets of $15.478 billion as of March 31, 2024, compared to $15.296 billion at the end of 2023, an increase of 1.2%[214] - Total stockholder's equity increased to $6.027 billion in Q1 2024 from $5.879 billion in Q1 2023, reflecting a growth of 2.5%[217] Cash Flow - Cash provided by operating activities was $241 million in Q1 2024, significantly higher than $94 million in Q1 2023[206] - Net cash provided by operating activities decreased significantly to $378 million from $1,531 million, a decline of about 75.3%[218] - For the three months ended March 31, 2024, CenterPoint Energy reported net cash provided by operating activities of $538 million, compared to $241 million for the same period in 2023, reflecting an increase of 123%[262] - The net cash used in investing activities for the same period was $844 million, a decrease from $795 million in 2023, indicating a 6% increase in cash outflow[263] - Financing activities resulted in a net cash inflow of $376 million for the three months ended March 31, 2024, compared to an outflow of $519 million in 2023, marking a significant turnaround[265] Capital Expenditures - Capital expenditures for Q1 2024 were $461 million, down from $587 million in Q1 2023, indicating a reduction of 21.4%[206] - Capital expenditures for the period were $303 million, down from $391 million, indicating a reduction of approximately 22.5%[218] - The estimated cost for the new natural gas combustion turbine facility is $334 million, expected to provide a combined output of 460 MW and operational by mid-2025[316] - Houston Electric's Mill Creek Transmission Project has estimated capital costs between $62 million and $98 million, with a decision on project approval expected in Q3 2024[320] - Estimated capital expenditures for CenterPoint Energy are projected to be $2,858 million for the remaining nine months of 2024, with Houston Electric and CERC expected to spend $1,442 million and $1,093 million, respectively[285] Regulatory and Compliance - CenterPoint Energy plans to sell its Louisiana and Mississippi natural gas LDC businesses, with the transaction expected to close in the first quarter of 2025[194] - CERC filed for a natural gas base rate increase of approximately 3.1% or $37 million, driven by safety and reliability investments, with a proposed 10.50% ROE[331] - CERC's Minnesota rate case requests a 6.5% increase or $85 million for 2024 and an additional 3.7% or $52 million for 2025, reflecting ongoing investments in system safety and reliability[332] - Indiana Electric seeks a 16% rate increase or $119 million based on a forward-looking 2025 test year, primarily for system safety and reliability improvements[333] - As of March 31, 2024, CenterPoint Energy and CERC recorded regulatory assets of $69 million and $104 million, respectively, related to the February 2021 Winter Storm Event[339] Environmental and Sustainability Initiatives - CenterPoint Energy has set a goal for net zero emissions for Scope 1 and certain Scope 2 emissions by 2035, and aims to reduce certain Scope 3 emissions by 20% to 30% by 2035[352] - The EPA's proposed emission limits for carbon dioxide from fossil fuel-fired power plants may impact CenterPoint Energy's operations, although the company does not plan to operate coal-fired units beyond December 2029[351] - CenterPoint Energy anticipates over $3 billion in cleaner energy investments over the next 10 years to support renewable energy generation and electric vehicle expansion[360] - The proposed preferred portfolio under Indiana Electric's new IRP aims to convert its last coal unit to natural gas by the end of 2027 and add significant renewable resources through 2033[360] Operational Highlights - The number of residential metered customers increased by 1% to 3,921,286 as of March 31, 2024, compared to 3,869,044 at the end of Q1 2023[255] - The throughput for residential customers decreased by 24% to 71 Bcf in Q1 2024 compared to 94 Bcf in Q1 2023[255] - CenterPoint Energy's solar projects face delays and increased costs due to supply chain issues, regulatory investigations, and the Uyghur Forced Labor Prevention Act, potentially impacting project viability[325] Innovation and Future Projects - CERC submitted its first innovation plan to the MPUC, which includes 18 pilot projects and seven smaller research-and-development projects aimed at deploying renewable energy resources[323] - Indiana Electric has filed a CPCN for a 200 MW wind energy generating facility, expected to be placed in service by the end of 2026, pending definitive agreements[291] - Houston Electric's construction of a 345 kV transmission line is substantially complete, with energization expected shortly after the completion of the Space City Solar Generation facility in the first half of 2025[298]