CenterPoint Energy, Inc. (CNP) reported fourth-quarter 2013 adjusted earnings of 26 cents per share, missing the Zacks Consensus Estimate by a penny. The figure was also down 16.1% from 31 cents a year ago.

For 2013, the company???s adjusted earnings were $1.26 per share, surpassing the Zacks Consensus Estimate by 3.3%. Annual earnings decreased 6.7% from the prior-year figure.

On a GAAP basis, annual earnings were 72 cents per share down from 97 cents per share a year ago. The variance between GAAP and adjusted earnings was due to the combined impact of a non-cash deferred tax charge and pre-tax partnership formation expenses.

Total Revenue

CenterPoint Energy???s total revenue for the reported quarter was $2.18 billion, beating the Zacks Consensus Estimate by 52.8%. Quarterly revenues improved 2.2% from the year-ago figure.

The company???s total annual revenue was $8.1 billion, outpacing the Zacks Consensus Estimate by 13.2%. Reported revenues increased 8.8% year over year.

Operational Results

In the quarter under review, CenterPoint Energy???s total expenses soared 7.9% year over year to $1,973 million, primarily due to a surge in natural gas expenses. This was partially offset by lower operation and maintenance and depreciation expenses.

The company???s operating margin was 9.7% in the reported quarter, down from 14.5% a year ago.

Total interest expenses decreased around 18% year over year to $114 million.

Segment Results

In fourth-quarter 2013, the Electric Transmission & Distribution segment reported operating income of $119 million, up 20% year over year. Natural Gas Distribution???s operating income inched up 3% year over year to $94 million. The Energy Services segment???s operating income dropped a substantial 92% year over year to $1 million. In the quarter, the Interstate Pipelines and Field Services segments did not post any operating income. The Other Operations segment reported a loss of $3 million.

Financial Condition

As of Dec 31, 2013, CenterPoint Energy reported cash and cash equivalents of $208 million, down from $646 million as of Dec 31, 2012.

Total long-term debt was $7,817 million as of Dec 31, 2013, down from $8,357 million at the end of Dec 31, 2012.

For 2013, net cash provided by operating activities was $11,613 million, considerably lower than $1,860 million in the year-ago comparable period.

CenterPoint Energy???s capital expenditures in 2013 increased 7.1% year over year to $1,272 million, primarily on increased investments in the Electric Transmission & Distribution and Natural Gas Distribution segments.

Peer Reviews

Edison International (EIX) reported adjusted earnings of 81 cents per share for the fourth quarter of 2013, beating the Zacks Consensus Estimate of 65 cents by 24.6%.

Zacks Rank

CenterPoint Energy currently has a Zacks Rank #4 (Sell). However, some better-ranked stocks in the same industry include Public Service Enterprise Group Inc. (PEG) and American Electric Power Co., Inc. (AEP). While Public Service Enterprise sports a Zacks Rank #1 (Strong Buy), American Electric Power carries a Zacks Rank #2 (Buy).

Read the Full Research Report on AEP
Read the Full Research Report on CNP
Read the Full Research Report on EIX
Read the Full Research Report on PEG


Zacks Investment Research