CenterPoint: Q3 Earnings Snapshot

CenterPoint Energy, Inc. (NYSE: CNP) released its third-quarter 2024 earnings on October 28, 2024, providing insight into the company's financial performance and strategic initiatives. This article will delve into the key aspects of CenterPoint's Q3 earnings, highlighting the factors that contributed to the variance between the company's earnings and analyst expectations, and its alignment with long-term growth strategy.

CenterPoint reported income available to common shareholders of $193 million, or $0.30 per diluted share on a GAAP basis for the third quarter of 2024, compared to $0.40 per diluted share in the comparable period of 2023. Non-GAAP EPS for the third quarter 2024 was $0.31 per diluted share, $0.09 per diluted share lower than the comparable quarter of 2023. The primary driver of this unfavorable variance was attributable to an increase in operating and maintenance expense of $0.11 per share as a result of the increased and accelerated activities under the first phase of the Greater Houston Resiliency Initiative.

CenterPoint's earnings growth rates compared to its peers in the utilities sector over the past year have been relatively stable. While the company has not experienced significant outperformance or underperformance compared to its peers, its earnings growth has been in line with the industry average.

CenterPoint's increased capital investment plan, totaling $44.5 billion through 2030, is expected to have a positive impact on its future earnings potential. The company has already deployed $100 million in 2023, with the remaining $500 million to be invested over the remainder of the decade. This increased capital expenditure is aimed at enhancing the company's infrastructure and services, which should drive long-term growth and improve earnings.

CenterPoint's Q3 performance aligns with its long-term growth strategy and guidance for 2024 and beyond. The company reiterated its 2024 non-GAAP EPS guidance range of $1.61-$1.63 per diluted share, representing 8% growth over full-year 2023 non-GAAP EPS at the midpoint. CenterPoint also initiated 2025 non-GAAP guidance range of $1.74-$1.76 per diluted share, which at the midpoint represents 8% growth from the 2024 midpoint and further maintains non-GAAP EPS growth target through 2030 of the mid-to-high end of 6%-8% annually.

In conclusion, CenterPoint's Q3 earnings snapshot provides a comprehensive overview of the company's financial performance and strategic initiatives. While the increase in operating and maintenance expenses negatively impacted earnings, the company's long-term growth strategy and increased capital investment plan are expected to drive future earnings growth and improve shareholder value. As CenterPoint continues to execute on its strategic objectives, investors should monitor the company's progress and assess its potential for long-term success.