CenterPoint Energy, Inc. (CNP) is a public utility holding company based in Houston, Texas. With a market cap of $18.3 billion, it manages and maintains essential electric infrastructure for customers in the greater Houston area and southwestern Indiana and operates electric generation capacity in Indiana. The energy company is expected to announce its fiscal second-quarter earnings for 2024 on Tuesday, July 30, before the market opens. 

Ahead of the event, analysts expect CenterPoint Energy to report a profit of $0.35 per share, up 25% from $0.28 per share in the year-ago quarter. The company has beat or matched the bottom-line estimates in three of the last four quarters while failing on one other occasion. 

In the previous quarter, CenterPoint Energy’s EPS grew 10% year over year to $0.55, beating the consensus estimate by 7.8%, primarily driven by growth and regulatory recovery.

For the full year 2024, analysts expect CenterPoint Energy to report EPS of $1.62, up 8% from $1.50 in fiscal 2023. Looking ahead, its EPS is expected to rise 7.4% annually to $1.74 in fiscal 2025.

CNP stock has edged up marginally on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 17.2% gains and the S&P 500 Utilities Sector SPDR's (XLU) 10.7% increase over the same period.

At the beginning of the year, CenterPoint's service areas saw a cold snap that increased customers' demand for electricity. Moreover, in December, Minnesota regulators approved the company's request for a rate increase, leading to higher customer bills starting in January. Thus, CenterPoint Energy reported robust Q1 earnings on Apr. 30, beating Wall Street estimates. CNP stock initially saw a marginal decline on the earnings release day but rebounded and rose up over the following three trading sessions.

Despite challenges such as higher financing costs and increased operating expenses, the company managed to maintain strong profitability through proactive cost management in Q1. It also announced a new $2.2 billion to $2.7 billion System Resiliency Plan aimed at enhancing infrastructure and customer experience in Texas. CenterPoint reaffirmed its full-year adjusted profit outlook of between $1.61 and $1.63 per share and maintained its adjusted profit growth target through 2030 of 6%-8% annually.

Analysts’ consensus opinion on CNP stock is cautiously bullish, with a “Moderate Buy” rating overall. Out of 14 analysts covering the stock, six advise a “Strong Buy” rating, two suggest a “Moderate Buy,” five give a “Hold,” and the remaining analyst recommends a “Strong Sell” rating.

The average analyst price target for CNP is $31, indicating a potential upswing of 8.2% from the prevailing market price.

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On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.