CenterPoint Energy Q3 Results Miss Estimates, But Reaffirms 2013 Outlook

(RTTNews) - Electric and natural gas utility CenterPoint Energy, Inc. (CNP) reported Wednesday a profit for the third quarter that soared from last year, which was weighed down by a goodwill impairment charge as well as lower expenses.

Both adjusted Earnings per share and quarterly revenues missed analysts' expectations. The company also reaffirmed its earnings guidance for the full-year 2013.

"Our regulated electric and gas distribution utilities had solid performances this quarter. We continue to make progress at Enable Midstream Partners, our midstream joint venture formed in May of this year. Enable's gathering and processing operations performed well while its interstate pipeline operations faced challenging market conditions," President and CEO David McClanahan said in a statement.

The Houston, Texas-based domestic energy delivery company, which serves more than five million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas, reported net income of $151 million or $0.35 per share for the third quarter, sharply higher than $10 million or $0.02 per share in the prior-year quarter.

Results for the year-ago quarter included $252 million non-cash goodwill impairment charge, and a $136 million non-cash, pre-tax gain.

Excluding items, adjusted net income for the quarter was $152 million or $0.35 per share, compared to $174 million or $0.40 per share in the year-ago quarter.

On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.36 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter declined to $1.64 billion from $1.71 billion in the same quarter last year, and missed four Wall Street analysts' consensus estimate of $1.91 billion.

Electric transmission & distribution revenues for the quarter edged down 0.4 percent to $745 million, while natural gas distribution revenues grew 7.3 percent to $381 million from last year.

Revenues from competitive natural gas sales and services increased 33.7 percent to $520 million, while revenues from both interstate pipelines and field services were nil.

Operating income for the third quarter was $244 million, higher than $88 million in the prior-year quarter, as total expenses decreased to $1.40 billion from $1.62 billion in the prior-year quarter.

Income Tax Expense declined to $78 million from $118 million from last year, while equity in earnings of unconsolidated affiliates totaled $80 million, compared to last year's $8 million.

Looking ahead to fiscal 2013, CenterPoint reaffirmed its earnings guidance in the range of $1.17 to $1.25 per share, while Street analysts are currently looking for earnings of $1.22 per share.

In Wednesday's regular trading session, CNP is currently trading at $24.29, up $0.03 or 0.12% on a volume of 8,666 million shares.