HOUSTON - CenterPoint Energy, Inc. (NYSE: NYSE:CNP) delivered a positive surprise in its first-quarter earnings, reporting an adjusted EPS of $0.55, which is $0.02 higher than the analyst consensus of $0.53.
However, the company's revenue for the quarter fell slightly short of expectations at $2.62 billion, compared to the forecasted $2.66 billion. Despite the slight revenue miss, the stock saw a modest uptick of +0.55% following the announcement.
The first-quarter results represent a 10% increase in adjusted EPS compared to the $0.50 reported in the same quarter of the previous year. This growth was primarily attributed to regulatory recovery and growth, contributing an additional $0.09 per share. Weather and usage also had a favorable impact, adding $0.02 per share compared to the first quarter of 2023. These gains were partially offset by higher financing costs and increased operating and maintenance expenses, which negatively impacted EPS by $0.06 per share.
CenterPoint's President & CEO, Jason Wells, commented on the results, highlighting the company's strong execution and long-term growth plans. "The strong first quarter of 2024 further demonstrates not only the strength of what I believe is one of the most tangible long-term growth plans in the industry but also this management team's ability to execute it," said Wells.
Looking ahead, CenterPoint reiterated its full-year 2024 adjusted EPS guidance range of $1.61-$1.63. This guidance suggests an 8% growth over the full-year 2023 adjusted EPS and aligns with the company's target of mid-to-high end annual growth of 6%-8% through 2030. The midpoint of the guidance range, $1.62, is in line with the analyst consensus.
In addition to the earnings report, CenterPoint announced the filing of Houston Electric's first Texas System Resiliency Plan, which could potentially lead to up to $500 million of incremental capital investment. This plan is part of the company's ongoing efforts to invest in a more modern and resilient grid, with a projected range of investments totaling $2.2 billion to $2.7 billion over the next three years.
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