Earnings Outlook For CenterPoint Energy

CenterPoint Energy CNP is gearing up to announce its quarterly earnings on Monday, 2024-10-28. Here's a quick overview of what investors should know before the release.

Analysts are estimating that CenterPoint Energy will report an earnings per share (EPS) of $0.44.

Investors in CenterPoint Energy are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Performance in Previous Earnings

During the last quarter, the company reported an EPS beat by $0.03, leading to a 2.67% drop in the share price on the subsequent day.

Here's a look at CenterPoint Energy's past performance and the resulting price change:

Market Performance of CenterPoint Energy's Stock

Shares of CenterPoint Energy were trading at $29.48 as of October 24. Over the last 52-week period, shares are up 10.17%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about CenterPoint Energy

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding CenterPoint Energy.

CenterPoint Energy has received a total of 10 ratings from analysts, with the consensus rating as Neutral. With an average one-year price target of $29.5, the consensus suggests a potential 0.07% upside.

Peer Ratings Overview

This comparison focuses on the analyst ratings and average 1-year price targets of CMS Energy, NiSource and Ameren, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• CMS Energy is maintaining an Outperform status according to analysts, with an average 1-year price target of $71.83, indicating a potential 143.66% upside.
• NiSource is maintaining an Outperform status according to analysts, with an average 1-year price target of $36.57, indicating a potential 24.05% upside.
• Ameren is maintaining an Outperform status according to analysts, with an average 1-year price target of $88.75, indicating a potential 201.05% upside.

Peers Comparative Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for CMS Energy, NiSource and Ameren, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

CenterPoint Energy ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Delving into CenterPoint Energy's Background

CenterPoint Energy owns a portfolio of businesses. Its regulated electric utilities provide transmission and distribution services to more than 2.5 million customers in the Houston area, southern Indiana, and west central Ohio. The company has natural gas distribution systems serving approximately 4 million customers.

CenterPoint Energy's Financial Performance

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: CenterPoint Energy's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 1.6%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Utilities sector.

Net Margin: CenterPoint Energy's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 11.97%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): CenterPoint Energy's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.24% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): CenterPoint Energy's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.56%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.85.

To track all earnings releases for CenterPoint Energy visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.