Artistic Operations Shares of CenterPoint Energy ( NYSE: CNP ) have been a modest performer over the past year, rising just 7%, and lagging the broader market as elevated interest rates have weighed on utility valuations. However, shares have been rising steadily since reporting solid Q1 earnings and sit near a 52-week high. I last covered CenterPoint in March , rating shares a “buy,” and since that recommendation, CNP has returned 12%, ahead of the market’s 6% rally.
I remain bullish Seeking Alpha In the company’s first quarter reported on April 30 th , CenterPoint earned $0.55 in adjusted EPS, beating consensus by $0.02 .
This came despite a 5% decline in revenue to $2.62 billion. Earnings rose 10% from last year, with $0.
08 of higher rates and a $0.02 weather benefit offsetting a $0.04 interest expense headwind.
While weather was better than last year, it has still been a milder than average winter. Given climate change, that may be a persistent trend. In the first quarter, revenue fell by $159 million , which may at first be surprising given more favorable weather and the fact it continues to grow its Housto n customer base 1-2%.
This decline was entirely driven by lower commodity prices. CNP’s energy costs fell by $291 million given weaker natural gas. CNP itself does not take commodity risk, instead passing price changes on to customers.
As such, revenue was lower, but this has no P&L or cash flow impact. Ex-energy, revenue rose by over $130 million, consisten.
