CenterPoint Energy, Inc. (NYSE:CNP) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 3.0% to hit US$2.2b. Statutory earnings per share (EPS) came in at US$0.50, some 2.3% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the 16 analysts covering CenterPoint Energy are now predicting revenues of US$10.5b in 2027. If met, this would reflect an okay 6.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 20% to US$2.09. In the lead-up to this report, the analysts had been modelling revenues of US$10.4b and earnings per share (EPS) of US$2.09 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for CenterPoint Energy
The analysts reconfirmed their price target of US$44.24, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic CenterPoint Energy analyst has a price target of US$50.00 per share, while the most pessimistic values it at US$39.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting CenterPoint Energy's growth to accelerate, with the forecast 5.2% annualised growth to the end of 2027 ranking favourably alongside historical growth of 2.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.4% annually. CenterPoint Energy is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for CenterPoint Energy going out to 2028, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 2 warning signs for CenterPoint Energy (of which 1 doesn't sit too well with us!) you should know about.
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