CenterPoint Energy, Inc. (CNP) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $179 million, or $ 0.41 a share in the quarter, against a net loss of $391 million, or $0.91 a share in the last year period.
Revenue during the quarter grew 15.89 percent to $1,889 million from $1,630 million in the previous year period. Gross margin for the quarter contracted 117 basis points over the previous year period to 37.11 percent. Total expenses were 84.97 percent of quarterly revenues, up from 83.74 percent for the same period last year. That has resulted in a contraction of 122 basis points in operating margin to 15.03 percent.
Operating income for the quarter was $284 million, compared with $265 million in the previous year period.
"Utility operations and midstream investments both performed well in the third quarter," said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. "As a result, we are adjusting guidance to the higher end of the range for 2016."
For financial year 2016, CenterPoint Energy, Inc. forecasts diluted earnings per share to be in the range of $1.16 to $1.20.
Operating cash flow falls marginally
CenterPoint Energy, Inc. has generated cash of $1,452 million from operating activities during the nine month period, down 4.35 percent or $66 million, when compared with the last year period.
The company has spent $739 million cash to meet investing activities during the nine month period as against cash outgo of $1,024 million in the last year period.
The company has spent $707 million cash to carry out financing activities during the nine month period as against cash outgo of $565 million in the last year period.
Cash and cash equivalents stood at $270 million as on Sep. 30, 2016, up 18.94 percent or $43 million from $227 million on Sep. 30, 2015.
Working capital turns positive
Working capital of CenterPoint Energy, Inc. has turned positive to $131 million on Sep. 30, 2016 from negative $791 million on Sep. 30, 2015. Current ratio was at 1.05 as on Sep. 30, 2016, up from 0.75 on Sep. 30, 2015.
Days sales outstanding went down to 21 days for the quarter compared with 47 days for the same period last year.
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