CenterPoint Energy's 3Q15 Earnings Results Were Mixed
CenterPoint Energy’s price movement
CenterPoint Energy (CNP) has a market cap of $8.0 billion. Its stock has been falling quarter-over-quarter in 2015. After CenterPoint Energy’s 3Q15 earnings report, its stock fell by 0.91% to close at $18.51 per share on November 5, 2015. The stock’s price movements on weekly, monthly, and YTD bases are -0.11%, -0.32%, and -18.1%, respectively.
Technically, the stock has broken the support of 20-day, 50-day, and 200-day moving averages throughout 2015. Currently, it’s trading at 0.60% below its 20-day moving average, 1.3% above its 50-day moving average, and 5.3% below its 200-day moving average.
The Guggenheim S&P Equal Weight Utilities ETF (RYU) invests 2.9% of its holdings in CenterPoint Energy. The ETF tracks an equal-weighted index of S&P 500 utility companies. The YTD price movement of RYU is -3.1% as of November 4, 2015.
CenterPoint Energy’s (CNP) competitors and their market caps are listed below:
- American Electric Power (AEP)—$27.7 billion
- Xcel Energy (XEL)—$18.3 billion
- AGL Resources (GAS)—$7.5 billion
- Atmos Energy Corporation (ATO)—$6.3 billion
CenterPoint Energy’s performance in 3Q15
The company reported 3Q15 net revenue of $1,630.0 million, a rise of 6.4% when compared to net revenue of $1,532.0 million in 2Q15. Revenue from the electric transmission & distribution and energy services segments rose by 17.3% and 10.8%, respectively, and revenue from the natural gas distribution segment fell by 15.9%, in 3Q15. The electric transmission & distribution segment’s actual mWh (megawatt-hours) delivered rose by 17.7% in 3Q15 on a quarterly basis. Operating income rose by 42.5% in 3Q15.
Net income and EPS (earnings per share) fell to -$391.0 million and -$0.91 per share, respectively, in 3Q15 as compared to net income and EPS of $77.0 million and $0.18 per share, respectively, in 2Q15. The company’s cash and cash equivalents fell by 7.3% in 3Q15. Its current ratio fell to 0.75, and its long-term debt-to-equity ratio rose to 1.9 in 3Q15 as compared to the current ratio and long-term debt-to-equity ratio of 0.80 and 1.7, respectively, in 2Q15.
The company has declared a regular quarterly cash dividend of $0.2475 per share on its common stock. It filed an application with the Minnesota Public Utilities Commission (MPUC) to change natural gas distribution rates. If approved, the new rates may generate ~$54 million, or 6% in additional revenue, on an annual basis. The company has projected diluted EPS in the range of $1.05–$1.10 for fiscal 2015.
About CenterPoint Energy
CenterPoint Energy’s services include natural gas delivery, electric transmission & distribution, CES energy sales, mobile energy solutions, pole attachments, surveying and right-of-way, and telecommunications delivery services.
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