On Nov. 2, electric and natural gas utility CenterPoint Energy (NYSE:CNP) released third-quarter earnings for the period ended Sept. 30.

  • Revenues declined by 6.7% to $1.9 billion because of a drop in the natural gas distribution and competitive natural gas sales and service segments.
  • EPS climbed by 73% to $0.26.
  • Management bumped up its full-year 2006 EPS guidance to a range of $1.00 to $1.10 compared to its prior expectation of $0.90 to $1.00.
  • Our Motley Fool CAPS players have a semi-blase, two-star opinion of CenterPoint's stock.

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2006

Q3 2005

Change

Sales

$1,935

$2,073

(6.7%)

Net Profit*

$83

$50

66%

EPS

$0.26

$0.15

73.3%

Diluted Shares

325

347

(6.3%)

*Net profit does not include income from discontinued operations.

Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

27.39%

22.19%

5.20

Operating Margin

14.68%

10.85%

3.83

Net Margin

4.29%

2.41%

1.88

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$680

$554

22.7%

Accounts Rec.

$716

$745

(3.9%)

Inventory

$382

$397

(3.8%)



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$547

$845

(35.3%)

Long-Term Debt

$7,905

$6,494

21.7%



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$728

$313

132.6%

Capital Expenditures

$641

$506

26.7%

Free Cash Flow

$87

($193)

N/A

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Related Companies:

  • Alliant Energy (NYSE:LNT)
  • Consolidated Edison (NYSE:ED)
  • DPL (NYSE:DPL)
  • Energy East (NYSE:EAS)
  • Nisource (NYSE:NI)

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