CenterPoint Energy reports Q3 2024 results; reiterates 2024 full year guidance and initiates 2025 full year guidance
-
Reported Q3 2024 earnings per diluted share of
$0.30 on a GAAP basis and$0.31 earnings per diluted share on a non-GAAP basis (“non-GAAP EPS”)
-
Reiterated 2024 non-GAAP EPS guidance range of
$1.61-$1.63 per diluted share, which represents 8% growth over full-year 2023 non-GAAP EPS at the midpoint1
-
Initiated 2025 non-GAAP guidance range of
$1.74-$1.76 per diluted share, which at the midpoint represents 8% growth from the 2024 midpoint and further maintains non-GAAP EPS growth target through 2030 of the mid-to-high end of 6%-8% annually 1
Non-GAAP EPS for the third quarter 2024 was
“I’m confident in our team’s ability to continue to make meaningful advances in furthering the resiliency and reliability of our
“I’m proud of our employees who helped us deliver on our commitments of Phase I of the Greater Houston Resiliency Initiative at an unprecedent pace. We know we have more work to do, and it’s already started in Phase II of our program as we work to re-earn the trust of our customers, communities, and stakeholders.” continued Wells.
1 |
CenterPoint is unable to present a quantitative reconciliation of forward-looking non-GAAP diluted earnings per share without unreasonable effort because changes in the value of ZENS (as defined herein) and related securities, future impairments, and other unusual items are not estimable and are difficult to predict due to various factors outside of management’s control. |
Earnings Outlook
In addition to presenting its financial results in accordance with GAAP, including presentation of income (loss) available to common shareholders and diluted earnings (loss) per share, CenterPoint provides guidance based on non-GAAP income and non-GAAP diluted earnings per share. Generally, a non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance that excludes or includes amounts that are not normally excluded or included in the most directly comparable GAAP financial measure.
Management evaluates CenterPoint’s financial performance in part based on non-GAAP income and non-GAAP earnings per share. Management believes that presenting these non-GAAP financial measures enhances an investor’s understanding of CenterPoint’s overall financial performance by providing them with an additional meaningful and relevant comparison of current and anticipated future results across periods. The adjustments made in these non-GAAP financial measures exclude items that management believes do not most accurately reflect the company’s fundamental business performance. These excluded items are reflected in the reconciliation tables of this news release, where applicable. CenterPoint’s non-GAAP income and non-GAAP diluted earnings per share measures should be considered as a supplement to, and not as a substitute for, or superior to, income available to common shareholders and diluted earnings per share, which respectively are the most directly comparable GAAP financial measures. These non-GAAP financial measures also may be different than non-GAAP financial measures used by other companies.
2023 and 2024 non-GAAP EPS; 2024 and 2025 non-GAAP EPS guidance range
-
2023 and 2024 non-GAAP EPS and 2024 and 2025 non-GAAP EPS guidance excludes:
- Earnings or losses from the change in value of CenterPoint’s 2.0% Zero-Premium Exchangeable Subordinated Notes due 2029 (“ZENS”) and related securities; and
-
Gain and impact, including related expenses, associated with mergers and divestitures, such as the divestiture of
Energy Systems Group, LLC and ourLouisiana andMississippi natural gas local distribution company (“LDC”) businesses.
In providing 2023 and 2024 non-GAAP EPS and 2024 and 2025 non-GAAP EPS guidance, CenterPoint does not consider the items noted above and other potential impacts such as changes in accounting standards, impairments, or other unusual items, which could have a material impact on GAAP reported results for the applicable guidance period. The 2024 and 2025 non-GAAP EPS guidance ranges also consider assumptions for certain significant variables that may impact earnings, such as customer growth and usage including normal weather, throughput, recovery of capital invested, effective tax rates, financing activities and related interest rates, and regulatory and judicial proceedings. To the extent actual results deviate from these assumptions, the 2024 and 2025 non-GAAP EPS guidance ranges may not be met, or the projected annual non-GAAP EPS growth rate may change. CenterPoint is unable to present a quantitative reconciliation of forward-looking non-GAAP diluted earnings per share without unreasonable effort because changes in the value of ZENS and related securities, future impairments, and other unusual items are not estimable and are difficult to predict due to various factors outside of management’s control.
Reconciliation of consolidated income (loss) available to common shareholders and diluted earnings (loss) per share (GAAP) to non-GAAP income and non-GAAP diluted earnings per share
|
Quarter Ended
|
||||||||||||
|
Dollars in
|
|
Diluted EPS (1) |
||||||||||
Consolidated income (loss) available to common shareholders and diluted EPS |
$ |
|
|
|
193 |
|
|
$ |
|
|
|
0.30 |
|
|
|
|
|
|
|
||||||||
ZENS-related mark-to-market (gains) losses: |
|
|
|
|
|
|
|
|
|
||||
Equity securities (net of taxes of |
|
|
(42) |
|
|
|
|
(0.07) |
|
||||
Indexed debt securities (net of taxes of |
|
|
42 |
|
|
|
|
0.07 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Impacts associated with mergers and divestitures (net of taxes of |
|
|
5 |
|
|
|
|
0.01 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Consolidated on a non-GAAP basis (4) |
$ |
|
|
|
198 |
|
|
$ |
|
|
|
0.31 |
|
1) |
Quarterly diluted EPS on both a GAAP and non-GAAP basis are based on the weighted average number of shares of common stock outstanding during the quarter, and the sum of the quarters may not equal year-to-date diluted EPS. |
|
2) |
Taxes are computed based on the impact removing such item would have on tax expense. |
|
3) |
Comprised of common stock of AT&T Inc., Charter Communications, Inc. and Warner Bros. Discovery, Inc. |
|
4) |
The calculation on a per-share basis may not add down due to rounding. |
Reconciliation of consolidated income (loss) available to common shareholders and diluted earnings (loss) per share (GAAP) to non-GAAP income and non-GAAP diluted earnings per share
|
Quarter Ended
|
||||||||||||
|
Dollars in
|
|
Diluted EPS (1) |
||||||||||
Consolidated income (loss) available to common shareholders and diluted EPS |
$ |
|
|
|
256 |
|
|
$ |
|
|
|
0.40 |
|
|
|
|
|
|
|
||||||||
ZENS-related mark-to-market (gains) losses: |
|
|
|
|
|
|
|
|
|
||||
Equity securities (net of taxes of |
|
|
(39) |
|
|
|
|
(0.06) |
|
||||
Indexed debt securities (net of taxes of |
|
|
37 |
|
|
|
|
0.06 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Impacts associated with mergers and divestitures (net of taxes of |
|
|
2 |
|
|
|
|
- |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Consolidated on a non-GAAP basis (4) |
$ |
|
|
|
256 |
|
|
$ |
|
|
|
0.40 |
|
1) |
Quarterly diluted EPS on both a GAAP and non-GAAP basis are based on the weighted average number of shares of common stock outstanding during the quarter, and the sum of the quarters may not equal year-to-date diluted EPS. |
|
2) |
Taxes are computed based on the impact removing such item would have on tax expense. Taxes related to the operating results of |
|
3) |
Comprised of common stock of AT&T Inc., Charter Communications, Inc. and Warner Bros. Discovery, Inc. |
|
4) |
The calculation on a per-share basis may not add down due to rounding. |
Filing of Form 10-Q for
Today,
Webcast of Earnings Conference Call
CenterPoint’s management will host an earnings conference call on
About
As the only investor-owned electric and gas utility based in
Forward-looking Statements
This news release includes, and the earnings conference call will include, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact included in this news release and the earnings conference call are forward-looking statements made in good faith by CenterPoint and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995, including statements concerning CenterPoint’s expectations, beliefs, plans, objectives, goals, strategies, future operations, events, financial position, earnings and guidance, growth, costs, prospects, capital investments or performance or underlying assumptions and other statements that are not historical facts. You should not place undue reliance on forward-looking statements. When used in this news release, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "goal," "intend," "may," "objective," "plan," "potential," "predict," "projection," "should," "target," "will" or other similar words are intended to identify forward-looking statements. The absence of these words, however, does not mean that the statements are not forward-looking.
Examples of forward-looking statements in this news release or on the earnings conference call include statements about Houston Electric’s Greater Houston Resiliency Initiative and longer-term resiliency plans, capital investments (including with respect to incremental capital opportunities, deployment of capital, renewables projects, and financing of such projects), the timing of and projections for upcoming rate cases for CenterPoint and its subsidiaries, the timing and extent of CenterPoint's recovery, including with regards to its restoration costs for the severe weather events in
Some of the factors that could cause actual results to differ from those expressed or implied by our forward-looking information include, but are not limited to, risks and uncertainties relating to: (1) CenterPoint’s business strategies and strategic initiatives, restructurings, joint ventures and acquisitions or dispositions of assets or businesses, including the announced sale of our
View source version on businesswire.com: https://www.businesswire.com/news/home/20241028586620/en/
Media:
Communications
Media.Relations@CenterPointEnergy.com
Investors:
713.207.6500
Source: