CentrePoint Energy, Inc. (NOC – Free Report) is expected to release first quarter 2022 results on May 3 before the opening bell.
In the last reported quarter, the company posted a surprise profit of 16.13%. CenterPoint Energy has a four-quarter earnings surprise of 22.98% on average.
Factors to note
The majority of the territories served by CNP experienced mixed weather conditions during the January-March 2022 quarter. While parts of its service areas experienced colder than normal temperatures as well as precipitation, normal temperatures accompanied by Drought conditions prevailed in other parts.
However, certain tornadoes accompanied by an ice storm affected portions of CenterPoint Energy’s service territories, which may have disrupted that utility’s services in those areas. This likely resulted in outages for its customers, which may have impacted the reportable quarter’s revenue.
Zacks’ consensus estimate for CNP’s first-quarter revenue is pegged at $2.56 billion, suggesting 0.5% growth over the figure reported for the year-ago quarter.
The impact of the extreme weather conditions mentioned above may have damaged some of the utility’s properties, increasing its quarterly costs for restoration work. This, in turn, could have hurt earnings in the soon to be released quarter.
Zacks’ consensus estimate for first-quarter earnings is pegged at 47 cents per share, indicating a 20.3% drop from the year-earlier figure.
What the Zacks Model Reveals
Our proven model does not conclusively predict an earnings beat for CenterPoint Energy this time around. The combination of a positive Earnings ESP and a Zacks rank of #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of beating Earnings. However, that is not the case here.
The company has an earnings ESP of -0.53% and a #3 Zacks ranking. You can discover the best stocks to buy or sell before they’re flagged with our earnings ESP filter.
Actions to consider
Here are three Utilities players you might want to consider as they have the right mix of elements to post a winning streak this season:
Edison International (EIX – Free Report) has a +13.71% Earnings ESP and Zacks Rank #3. The stock has a long-term earnings growth rate of 4%.
Zacks’ consensus estimate for Edison International’s first-quarter revenue and earnings are pegged at $3.12 billion and 66 cents per share, respectively. EIX has a four-quarter average surprise profit of 1.35%.
PG&E Corp. (PCG – Free Report) has a +1.96% Earnings ESP and Zacks Rank #3. The stock has a long-term earnings growth rate of 2.5%. You can see the full list of today’s Zacks #1 Rank stocks here.
The Zacks consensus estimate for PG&E Corp.’s revenue and profit. in the first quarter is set at 4.97 billion and 26 cents, respectively. PCG has an average four-quarter negative earnings surprise of 8.11%.
Dominion Energy (D – Free Report) has an ESP on Earnings of +0.86% and a Zacks Rank #3. The stock has a long-term earnings growth rate of 6.1%.
Zacks’ consensus estimate for Dominion Energy’s first-quarter revenue and profit is pegged at $4.28 billion and $1.17, respectively. D has a four-quarter average surprise profit of 1.09%.
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