A month has gone by since the last earnings report for CenterPoint Energy (CNP). Shares have added about 10.5% in that time frame, outperforming 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 Q3 Earnings Miss Estimates, Revenues Decline Y/Y

CenterPoint Energy reported third-quarter 2024 adjusted earnings of 31 cents per share, which missed the Zacks Consensus Estimate of 36 cents by 13.9%. The bottom line also deteriorated 22.5% from the year-ago figure due to an increase in operating and maintenance expenses. This rise in expenses was due to the increased and accelerated activities under the first phase of the Greater Houston Resiliency Initiative.
 
The company’s GAAP earnings also came in at 30 cents per share, which declined 25% from the prior-year figure of 40 cents.

The year-over-year deterioration can be attributed to lower revenues and higher total expenses compared to the previous year.

Q3 Revenues

CNP generated revenues of $1.86 billion, which missed the Zacks Consensus Estimate of $1.88 billion by 1.2%. The top line also came in 0.2% lower than the year-ago reported figure.

Operational Results

During the third quarter, total expenses increased 6.7% year over year to $1.43 billion.

The company reported an operating income of $424 million compared with $518 million a year ago.

Interest expenses and other finance charges totaled $191 million, up 8.5% from $176 million recorded in the previous year.

Financial Condition

As of Sept. 30, 2024, CenterPoint Energy had cash and cash equivalents of $112 million compared with $90 million as of Dec. 31, 2023.

The total long-term debt was $19.73 billion as of Sept. 30, 2024, compared with $17.56 billion as of Dec. 31, 2023.

Net cash flow from operating activities amounted to $1.25 billion as of Sept. 30, 2024, compared with $3.07 billion in the year-ago period.

The total capital expenditure was $2.50 million as of Sept. 30, 2024, compared with $3.32 billion a year ago.

2024 Guidance

CenterPoint Energy reaffirmed its 2024 earnings guidance. It continues to expect to generate adjusted earnings per share in the range of $1.61-$1.63. The Zacks Consensus Estimate for earnings is pegged at $1.62 per share, in line with the midpoint of the company’s guided range.

CNP initiated its 2025 earnings guidance. The company expects to generate adjusted earnings in the range of $1.74-$1.76 per share. The Zacks Consensus Estimate for earnings is pegged at $1.73 per share, which lies lower than the company’s guided range.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates review.

The consensus estimate has shifted 10.88% due to these changes.

VGM Scores

At this time, CenterPoint has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, CenterPoint has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

CenterPoint belongs to the Zacks Utility - Electric Power industry. Another stock from the same industry, DTE Energy (DTE), has gained 1.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.

DTE Energy reported revenues of $2.91 billion in the last reported quarter, representing a year-over-year change of +0.6%. EPS of $2.22 for the same period compares with $1.44 a year ago.

For the current quarter, DTE Energy is expected to post earnings of $1.65 per share, indicating a change of -16.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -6.8% over the last 30 days.

DTE Energy has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

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