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Sep 30, 2022

CenterPoint Energy Q3 2022 Earnings Report

CenterPoint Energy reported strong results for Q3 2022 and updated its long-term capital plan.

Key Takeaways

CenterPoint Energy reported GAAP earnings of $0.30 per diluted share and non-GAAP earnings of $0.32 per diluted share for Q3 2022. The company reiterated its full-year 2022 non-GAAP EPS guidance of $1.37-$1.39 and initiated 2023 non-GAAP guidance range of $1.48-$1.50. The company also increased its long-term capital plan through 2030 by $2.3B to nearly $43B.

Reported Q3 2022 earnings of $0.30 and $0.32 per diluted share on a GAAP and non-GAAP basis, respectively.

Reiterated full-year 2022 non-GAAP EPS guidance of $1.37-$1.39, representing an increase of 9% at the midpoint compared to full year 2021.

Initiated 2023 non-GAAP guidance range of $1.48-$1.50, which represents an 8% growth over 2022 and further maintains growth targets of 8% for 2024 and the mid-to-high end of 6%-8% thereafter.

Increased long-term capital plan through 2030 by $2.3B to nearly $43B for further resiliency and grid modernization to benefit our customers; confirmed this plan will not require issuance of new equity.

Total Revenue
$1.9B
Previous year: $1.75B
+8.8%
EPS
$0.32
Previous year: $0.33
-3.0%
Gross Profit
$832M
Previous year: $756M
+10.1%
Cash and Equivalents
$114M
Previous year: $133M
-14.3%
Total Assets
$36.7B
Previous year: $37.2B
-1.2%

CenterPoint Energy

CenterPoint Energy

Forward Guidance

CenterPoint Energy expects to deliver industry-leading 8% non-GAAP EPS growth each year through 2024 followed by the mid-to-high end of 6-8% each year thereafter through 2030.

Positive Outlook

  • Remain on track to deliver on full-year $1.37-$1.39 of non-GAAP EPS for 2022, a 9% growth for the year.
  • Remain on track to deliver an industry-leading 8% non-GAAP EPS growth each year through 2024 followed by the mid-to-high end of 6-8% each year thereafter through 2030
  • Capital investments will provide future earnings power for the company.
  • Focus continues to be on delivering industry leading growth each and every year, while over-delivering for our customers, investors, and other stakeholders.
  • Incremental capital will be dedicated to further distribution system resiliency, reliability and grid modernization, as well as transmission upgrades in our Houston Electric area that should benefit our customers.

Challenges Ahead

  • Changes in the value of ZENS and related securities are not estimable.
  • Future impairments are not estimable.
  • Other unusual items are difficult to predict due to various factors outside of management’s control.
  • The 2022 non-GAAP EPS guidance range also considers assumptions for certain significant variables that may impact earnings, such as customer growth and usage including normal weather.
  • The 2022 non-GAAP EPS guidance range also considers assumptions for throughput, recovery of capital invested, effective tax rates, financing activities and related interest rates, and regulatory and judicial proceedings.