CenterPoint Energy
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), CenterPoint Energy whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.
Gross margins grew, operating margins grew, net margins dropped.
Revenue details
CenterPoint Energy reported revenue of $1.71 billion. The four analysts polled by S&P Capital IQ looked for a top line of $2.01 billion on the same basis. GAAP reported sales were 9.4% lower than the prior-year quarter's $1.88 billion.
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 $0.37. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.34 per share. GAAP EPS of $0.02 for Q3 were 99% lower than the prior-year quarter's $2.27 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 42.6%, 550 basis points better than the prior-year quarter. Operating margin was 19.9%, 90 basis points better than the prior-year quarter. Net margin was 0.6%, 5,110 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $2.47 billion. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $8.36 billion. The average EPS estimate is $1.19.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 286 members out of 308 rating the stock outperform, and 22 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 76 give CenterPoint Energy a green thumbs-up, and six 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 $22.00.
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