•
Mar 31, 2023

CenterPoint Energy Q1 2023 Earnings Report

CenterPoint Energy reported strong Q1 earnings, driven by regulatory recovery and reduced O&M expenses, while navigating headwinds from higher interest expense and mild winter weather.

Key Takeaways

CenterPoint Energy reported a positive start to 2023 with Q1 GAAP earnings of $0.49 per diluted share and non-GAAP earnings of $0.50 per diluted share. The company reaffirmed its 2023 non-GAAP EPS guidance range of $1.48-$1.50, representing an 8% growth over 2022.

Q1 2023 GAAP earnings were $0.49 per diluted share.

Q1 2023 non-GAAP EPS was $0.50, a 6% increase year-over-year.

2023 non-GAAP EPS guidance reaffirmed at $1.48-$1.50, reflecting 8% growth.

Capital investments are on track, with over a quarter of the year's planned $3.6B already deployed.

Total Revenue
$2.78B
Previous year: $2.76B
+0.6%
EPS
$0.5
Previous year: $0.47
+6.4%
Gross Profit
$998M
Previous year: $942M
+5.9%
Cash and Equivalents
$114M
Previous year: $125M
-8.8%
Total Assets
$37.8B
Previous year: $35.2B
+7.2%

CenterPoint Energy

CenterPoint Energy

Forward Guidance

CenterPoint Energy reaffirmed its non-GAAP EPS guidance range for 2023 at $1.48 to $1.50, representing an 8% growth over 2022. The company is targeting 8% growth in non-GAAP EPS for 2024 and a growth rate in the mid-to-high end of 6%-8% annually thereafter through 2030.

Positive Outlook

  • Continued execution of long-term growth strategy.
  • Targeting 8% growth in non-GAAP EPS in 2023 and 2024.
  • Capital spending supports robust organic growth.
  • Enhancements in safety and grid resiliency through capital investments.
  • Addition of Chris Foster as CFO increases confidence in management team.

Challenges Ahead

  • Higher interest expense.
  • Mild winter weather impacted earnings.
  • Changes in accounting standards.
  • Potential future impairments.
  • Other unusual items that are not estimable.