CenterPoint Energy (CNP) Provides 2015 and 2016 Outlook

Houston, TX-based CenterPoint Energy Inc. CNP provided its 2016 outlook while reaffirming the 2015 guidance. The company is scheduled to report fourth-quarter results on Feb 26, 2016, before the opening bell.

The company provided its earnings guidance for 2016 in the range of $1.12 to $1.20 per diluted share. On the other hand, it reiterated its earnings expectation for 2015 in the range of $1.05 to $1.10 per share. It aims to achieve earnings per share growth of 4–6% on the back of its existing businesses and investments in 2016. The investment of $363 million in Enable Midstream preferred security and expansion of the company's non-regulated Energy Services business are expected to accelerate bottom-line growth.

Moreover, CenterPoint Energy reiterated its earnings per share growth target in the range of 4–6% per annum through 2018. The company anticipates earnings per share contributions from Utility Operations and Midstream Investments of 7075% and 2530%, respectively.

CenterPoint Energy provided the guidance after considering factors like Enable Midstream's latest public outlook dated Nov 4, 2015, and effective tax rates. The company expects to incur non-cash impairment on its interest in Enable Midstream related to the preparation of its fourth-quarter 2015 and full-year financials.

Meanwhile, CenterPoint Energy announced that it is evaluating strategic alternatives for its investment in Enable Midstream Partners, which includes a sale or spin-off. Presently, CenterPoint Energy owns 50% general partner interest and 55.4% limited partner interest in Enable Midstream, a publicly traded master limited partnership that the company controls in cooperation with OGE Energy Corp OGE.

CenterPoint Energy is a domestic energy delivery company that provides electric transmission & distribution, natural gas distribution, and competitive natural gas sales and services operations. The company currently serves over 5.5 million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas. The company is focused on strengthening its infrastructure through regular capital investments, which will help it to meet the requirements of an expanding customer base, going ahead.

Zacks Rank

CenterPoint Energy currently has a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the same industry include Calpine Corp. CPN and Northwestern Corporation NWE. While Calpine sports a Zacks Rank #1 (Strong Buy), Northwestern has a Zacks Rank #2 (Buy).

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