CenterPoint Energy (CNP) Falls Short of Earnings Expectations, but Remains Focused on Resilience and Growth
CenterPoint Energy, Inc. (NYSE: CNP) reported third-quarter sales of $1.856 billion, falling short of analysts’ expectations of $1.933 billion. Adjusted earnings per share (EPS) also missed the mark at $0.31, compared to the consensus estimate of $0.32. The decline in adjusted EPS from the same period in 2023 was attributed to a $0.11 per share increase in operating and maintenance expenses linked to the first phase of the Greater Houston Resiliency Initiative.
While growth and regulatory recovery contributed positively to earnings, unfavorable usage due to Hurricane Beryl outages and adverse weather variances at Houston Electric offset these gains. Despite the earnings miss, CenterPoint remains optimistic about its future, reaffirming its 2024 adjusted EPS guidance of $1.61 – $1.63. This represents an 8% growth over 2023 at the midpoint. The company also introduced a 2025 adjusted EPS guidance of $1.74 – $1.76, indicating a projected 8% increase from the 2024 midpoint.
CenterPoint emphasized its commitment to long-term growth, reiterating its annual EPS growth target of 6% – 8% through 2030. Jason Wells, President & CEO of CenterPoint, highlighted the company’s progress in hardening its transmission system and its shift towards increasing investments in automation and self-healing technologies at the distribution level. Wells expressed confidence that these efforts will ultimately enable Houston Electric to build the most resilient coastal grid in the nation.
Investors interested in gaining exposure to CenterPoint Energy can consider the Virtus Reaves Utilities ETF (UTES) and the First Trust Utilities AlphaDEX Fund (FXU).
CenterPoint’s stock closed down by 0.58% at $29.31 on Friday. While the company faces challenges in the near term, its focus on resilience and long-term growth remains a key driver for investors.
