Yahoo Finance Earnings Report: CenterPoint Energy, Inc. Missed Revenue Estimates By 5.1%
CenterPoint Energy, Inc. (NYSE:CNP) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. CenterPoint Energy missed revenue estimates by 5.1%, coming in atUS$2.6b, although statutory earnings per share (EPS) of US$0.55 beat expectations, coming in 3.0% ahead of analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for CenterPoint Energy
Taking into account the latest results, the consensus forecast from CenterPoint Energy's eleven analysts is for revenues of US$9.22b in 2024. This reflects an okay 8.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 15% to US$1.62. In the lead-up to this report, the analysts had been modelling revenues of US$9.34b and earnings per share (EPS) of US$1.62 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$30.76. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on CenterPoint Energy, with the most bullish analyst valuing it at US$34.00 and the most bearish at US$29.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting CenterPoint Energy's growth to accelerate, with the forecast 11% annualised growth to the end of 2024 ranking favourably alongside historical growth of 2.1% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect CenterPoint Energy to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for CenterPoint Energy going out to 2026, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for CenterPoint Energy (1 is a bit unpleasant!) that we have uncovered.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
