CenterPoint Energy (CNP) Stock Declining Despite Earnings Beat

CenterPoint Energy (CNP) stock is down on heavy trading volume Friday, after the company reported its 2015 third quarter earnings results.
By Amanda Albright ,

NEW YORK (TheStreet) --CenterPoint Energy (CNP) - Get Report stock is falling, down by 6.05% to $17.39 on heavy trading volume on Friday afternoon, after the company reported its 2015 third quarter earnings results.

Before the market open on Thursday, the Houston-based public utility company reported earnings of 34 cents per share. Revenue decreased to $1.63 billion, down from $1.8 billion in the year-ago period.

Analysts surveyed by Zacks Investment Research estimated the company would report earnings of 30 cents per share on revenue of $1.8 billion. 

"We adjusted guidance towards the higher end of the range for 2015, largely due to the performance of our utility businesses," said CenterPoint Energy CEO Scott M. Prochazka. "We continue to pursue steady earnings growth as we serve the needs of our growing customer base."

So far today, 6.52 million shares of CenterPoint have traded, versus its 30-day average of 4.38 million shares. 

Separately, TheStreet Ratings team rates CENTERPOINT ENERGY INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate CENTERPOINT ENERGY INC (CNP) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

You can view the full analysis from the report here: CNP

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Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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