CenterPoint Energy's Q3 Earnings Fall Short of Expectations, Stock Sees Modest Uptick

HOUSTON - CenterPoint Energy (NYSE:CNP) reported third-quarter earnings that fell short of analysts' expectations, but the company reiterated its year-end guidance and offered an optimistic outlook for 2025. The stock rose by 1% following the announcement.

The Houston-based utility company reported adjusted earnings of $0.31 per share for the third quarter, missing the analysts' expectation of $0.32. Revenue came in at $1.86 billion, below the forecast of $1.99 billion.

Despite the earnings falling below expectations, CenterPoint reiterated its adjusted EPS guidance for 2024, anticipating a range of $1.61 to $1.63 per share, which represents an 8% growth compared to 2023 at the midpoint. The company also initiated guidance for 2025, expecting earnings of $1.74 to $1.76 per share, indicating an 8% increase from the midpoint of 2024.

Jason Wells, President and CEO of CenterPoint, stated, "I am confident in our team's ability to continue making meaningful progress in advancing the resilience and reliability of our Houston electric grid. We have now shifted our focus to increasing and accelerating investments in automation and self-healing technologies at the distribution system level."

The company noted that its third-quarter results were impacted by rising operation and maintenance costs related to the Greater Houston Resilience Initiative and adverse weather conditions compared to the previous year.