NYSE$CNP

Centerpoint Energy Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

CenterPoint Energy's Q4 2019 earnings increased compared to Q4 2018, driven by strong utility performance and disciplined cost management, with EPS of $0.25 and non-GAAP EPS of $0.45.

CenterPoint Energy reported Q4 2019 earnings of $0.25 per diluted share, up from $0.18 in Q4 2018. On a guidance basis, excluding certain merger impacts and impairment charges, earnings were $0.45 per diluted share, compared to $0.36 in the prior year. The company's strong utility performance drove the results.

  • Q4 2019 earnings were $0.25 per diluted share, compared to $0.18 per diluted share for Q4 2018.
  • On a guidance basis, Q4 2019 earnings were $0.45 per diluted share, compared to $0.36 per diluted share for Q4 2018.
  • Strong utility performance drove the 2019 results.
  • Agreements to sell Energy Services and Infrastructure Services businesses were announced.

Headline financials

Total Revenue

$3.23B

Previous: $3.04B+6.4%
EPS (adj)

$0.45

Previous: $0.36+25.0%
Net Income

$157M

Previous: $120M+30.8%
Operating Income

$302M

Previous: $167M+80.8%
Gross Profit

$775M

Previous: $527M+47.1%
Cash & Equivalents

$241M

Previous: $4.23B-94.3%
Total Assets

$35.5B

Previous: $27.1B+31.1%

Revenue & EPS history

CenterPoint Energy · Revenue · Quarterly

$3.23B

Q4 2019+6.4%vs Q4 2018
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

CenterPoint Energy · $1.97B total across 2 segments · Q4 2020

  • Natural Gas
    $1.1B
  • Electric
    $870M

Forward guidance

CenterPoint Energy provided 2020 guidance with a Utility EPS range of $1.10 - $1.20 and a Midstream Investments EPS expected range of $0.23 - $0.28.

Tailwinds

  • 2020 guidance basis Utility EPS range of $1.10 - $1.20
  • 2020 - 2024 target of 5 - 7% compound annual guidance basis Utility EPS growth, using the 2020 range of $1.10 - $1.20 as the starting EPS
  • 2020 Midstream Investments EPS expected range is $0.23 - $0.28
  • Utility EPS guidance range includes net income from Houston Electric, Indiana Electric and Natural Gas Distribution business segments, as well as after tax operating income from the Corporate and Other business segment.
  • The 2020 Utility EPS guidance range considers operations performance to date and assumptions for certain significant variables that may impact earnings, such as customer growth (approximately 2% for electric operations and 1% for natural gas distribution) and usage including normal weather, throughput, recovery of capital invested through rate cases and other rate filings, effective tax rates, financing activities and related interest rates, regulatory and judicial proceedings and anticipated cost savings as a result of the merger.

Headwinds

  • Utility EPS guidance excludes certain integration and transaction-related fees and expenses associated with the merger
  • Utility EPS guidance excludes severance costs
  • Utility EPS guidance excludes Midstream Investments and allocation of associated corporate overhead
  • Utility EPS guidance excludes results related to Infrastructure Services and Energy Services prior to the anticipated closing of the sale of those businesses, including anticipated costs and impairment resulting from the sale of Infrastructure Services and Energy Services
  • Utility EPS guidance excludes earnings or losses from the change in value of ZENS and related securities

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

-0.0%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+0.2%

Avg return

30 days after

49%

36 / 73 earnings

Positive

+16.3%

Q1 2020

Best reaction

-6.6%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.5%+2.4%+1.7%
Q4 2025-0.2%+2.1%+0.2%
Q3 2025-1.1%-1.3%-1.2%
Q2 2025-0.5%-1.1%-1.0%
Q1 2025+1.6%+2.4%+0.6%
Q4 2024-0.1%+3.1%+6.6%
Q3 2024+0.4%-2.5%+11.4%
Q2 2024-4.9%-7.3%-7.2%
Q1 2024+0.3%+0.8%+1.8%
Q4 2023+1.4%+0.1%+0.4%
Q3 2023-2.8%-2.1%+1.7%
Q2 2023-3.5%-5.5%-9.6%
Q1 2023+0.4%-1.0%-6.6%
Q4 2022-0.5%-0.7%+0.0%
Q3 2022-1.7%-0.5%+8.5%
Q2 2022+0.2%-0.5%+1.0%
Q1 2022+3.7%+1.7%+6.2%
Q4 2021-0.5%+2.9%+11.9%
Q3 2021+1.4%+0.9%+2.5%
Q2 2021+3.0%+3.6%+0.9%
Q1 2021+0.9%-1.3%+4.6%
Q4 2020-6.6%-6.0%+5.6%
Q3 2020+6.0%+11.8%+6.0%
Q2 2020+7.3%+8.4%+4.5%
Q1 2020+16.3%+11.3%+14.2%
Q4 2019-4.4%-6.4%-51.5%
Q3 2019+0.0%-2.9%-13.0%
Q2 2019-3.6%-3.8%-1.2%
Q1 2019-2.6%-2.2%-5.4%
Q4 2018-3.2%-3.2%-1.5%
Q3 2018-0.7%-0.4%+0.2%
Q2 2018+0.6%+0.5%-1.1%
Q1 2018+4.9%+3.5%+1.1%
Q4 2017+5.7%+3.9%+1.0%
Q3 2017-0.1%+0.7%-0.7%
Q2 2017+1.3%+3.1%+5.2%
Q1 2017-0.4%-1.6%+3.2%
Q4 2016+3.4%+4.1%+2.7%
Q3 2016+4.8%+3.0%+6.9%
Q2 2016-3.8%-4.0%-4.1%
Q1 2016+1.5%
Q4 2015-2.7%
Q3 2015-6.5%
Q2 2015+1.1%
Q1 2015-3.3%
Q4 2014-3.6%
Q3 2014+1.2%
Q2 2014-0.3%
Q1 2014-1.9%
Q4 2013-2.6%
Q3 2013+1.9%
Q2 2013+1.2%
Q1 2013+0.0%
Q4 2012+3.5%
Q3 2012-5.1%
Q2 2012+1.2%
Q1 2012-0.8%
Q4 2011+4.5%
Q3 2011+0.3%
Q2 2011-4.0%
Q1 2011+0.4%
Q4 2010+1.6%
Q3 2010+0.9%
Q2 2010+2.4%
Q1 2009-3.2%
Q1 2010-3.2%
Q4 2007-3.5%
Q4 2009-3.5%
Q3 2008-0.9%
Q3 2009-0.9%
Q2 2009+0.3%
Q4 2008+0.3%
Q2 2008+0.3%

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