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CenterPoint Energy - $CNP - Earnings Analysis: Consistent revenue generation through regulated operations.

By sagebytes in Business —

Business Model

CenterPoint Energy generates revenue primarily through regulated electric transmission and distribution, power generation, and natural gas distribution operations.

Revenue Sources

  • Electric Transmission and Distribution: Revenue from REPs based on electricity delivered and from municipalities, electric cooperatives, and other distribution companies.
  • Natural Gas Distribution: Revenue from regulated intrastate natural gas sales and transportation to residential, commercial, industrial, and transportation customers.

Income Statement Analysis

  • Revenues decreased 0.61% year-over-year.
  • Operating Income increased 13.07% year-over-year.
  • Net Income increased 17.53% year-over-year.

Balance Sheet Analysis

  • Total assets increased 10.20% year-over-year.
  • Total stockholders equity increased 10.33% year-over-year.
  • Total liabilities increased 10.16% year-over-year.

Cash Flow Analysis

  • Net cash provided by operating activities decreased 44.83% year-over-year.
  • Net cash used in investing activities increased 5.81% year-over-year.
  • Net cash provided by financing activities increased 507.22% year-over-year.
  • CASH CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD decreased -72.48% year-over-year.

Capital Allocation

The company's capital allocation strategy includes reinvesting in infrastructure, funding strategic initiatives, and returning value to shareholders through dividends. They efficiently fund robust capital investment plan with asset recycling gross proceeds and securitization proceeds and equity or equity-like proceeds to support the incremental capital.

Management Commentary

Management will discuss certain topics that will contain projections and other forward looking information and statements that are currently based on management's beliefs, assumptions and information currently available to management

The $1.62 per share translates to 8% growth over our 2023 actual results. This is now the fourth consecutive year of meeting or exceeding our annual non GAAP EPS guidance.

Overall Sentiment: Positive, reflecting confidence in financial performance and future growth prospects.

Disclaimer: This report is for informational purposes only and not investment advice. The analysis is based on limited information and subject to change. Investing in securities involves risks, including potential loss of principal. Past performance doesn't guarantee future results. Always conduct your own research, understand the risks, and consult a financial professional before making investment decisions.