CenterPoint Energy, Inc. (CNP), headquartered in Houston, Texas, engages in the business of power generation and distribution. Valued at $21.1 billion by market cap, the company conducts activities in electricity transmission and distribution, natural gas distribution, interstate pipeline and gathering operations, and power generation. The leading energy delivery company is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Thursday, Feb. 20.
Ahead of the event, analysts expect CNP to report a profit of $0.40 per share on a diluted basis, up 25% from $0.32 per share in the year-ago quarter. The company beat or matched the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect CNP to report EPS of $1.62, up 8% from $1.50 in fiscal 2023. Its EPS is expected to rise 7.4% year over year to $1.74 in fiscal 2025.
CNP stock has underperformed the S&P 500’s ($SPX) 25.5% gains over the past 52 weeks, with shares up 18.1% during this period. Similarly, it underperformed the Utilities Select Sector SPDR Fund’s (XLU) 29.1% gains over the same time frame.
CNP's underperformance can be due to the disruptions caused by Hurricane Beryl, which led to widespread power outages and slowed restoration efforts, adversely impacting its overall growth.
On Oct. 28, CNP shares closed up by 1.5% after reporting its Q3 results. Its adjusted EPS of $0.31, missed Wall Street expectations of $0.36. The company’s revenue was $1.86 billion, falling short of Wall Street forecasts of $1.88 billion. CNP expects full-year adjusted EPS to be between $1.61 and $1.63.
Analysts’ consensus opinion on CNP stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 17 analysts covering the stock, six advise a “Strong Buy” rating, one suggests a “Moderate Buy,” nine give a “Hold,” and one recommends a “Strong Sell.” While CNP currently trades slightly above its mean price target of $32.43, the Street-high price target of $37 suggests an upside potential of 14.1%.
