HOUSTON—CenterPoint Energy Inc. said Wednesday that third-quarter profit surged on a gain from a restructuring of the Texas electricity market, which helped the utility company overcome disappointing revenue.
Even excluding the special gain, profit was slightly higher than analysts expected, and CenterPoint said full-year earnings would be at the top of its previously forecast range.
CenterPoint shares gained 86 cents, or 4.3 percent, to $21.09 in morning trading.
Net income was $973 million, or $2.27 per share, compared with $123 million, or 29 cents per share, a year earlier.
The company recognized a $811 million gain from the settlement of accounting for 2002 restructuring of the Texas electricity industry, which led CenterPoint to sell power-generating assets and seek to account for so-called stranded costs. Without the gain, the company would have earned 38 cents per share.
Analysts, who usually exclude one-time items, expected 29 cents per share.
The company said it will recognize another $258 million in revenue over time from the restructuring accounting.
The company said full-year earnings would be at the top end of its previous range of $1.04 to $1.14 per share. Analysts were expecting $1.11 per share, according to FactSet.
Third-quarter revenue, without the regulatory settlement, increased just 1.4 percent, to $1.91 billion from $1.88 billion a year earlier. That was below analysts' forecast of $2.17 billion.