CenterPoint Energy Beats Analyst Estimates on EPS

CenterPoint Energy (NYSE: CNP  ) reported earnings on Feb. 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), CenterPoint Energy whiffed on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share grew. GAAP earnings per share grew.

Margins grew across the board.

Revenue details
CenterPoint Energy logged revenue of $2.14 billion. The five analysts polled by S&P Capital IQ expected to see net sales of $2.42 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.28. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.21 per share. Non-GAAP EPS of $0.28 for Q4 were 7.7% higher than the prior-year quarter's $0.26 per share. GAAP EPS of $0.31 for Q4 were 15% higher than the prior-year quarter's $0.27 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 30.5%, 340 basis points better than the prior-year quarter. Operating margin was 14.5%, 150 basis points better than the prior-year quarter. Net margin was 6.3%, 80 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.71 billion. On the bottom line, the average EPS estimate is $0.37.

Next year's average estimate for revenue is $8.76 billion. The average EPS estimate is $1.26.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 279 members out of 301 rating the stock outperform, and 22 members rating it underperform. Among 83 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give CenterPoint Energy a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CenterPoint Energy is outperform, with an average price target of $21.92.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On March 04, 2013, at 1:54 PM, mastedon2 wrote:

    Centerpoint Energy has everyone holding a sack of gold-painted rocks.

    This Natural Gas service and provider, can not continue charging customers a base customer charge for "Reading meters" while it continues to "estimate" readings and issues bills on those estimates. IT is fraudulent from the top down, and will not last long..

    Cant imagine why the Railroad Commission is an authority to Centerpoint Energy,,likely another method of screwing the consumer who attempts to be treated fairly, and according to this MONOPOLY's own stated contractual responsibilties.

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