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Entergy's (ETR) Q2 Earnings Beat Estimates, Revenues Fall Y/Y

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Entergy Corporation (ETR - Free Report) reported second-quarter 2023 earnings of $1.84 per share, which surpassed the Zacks Consensus Estimate of $1.69 by 8.9%. The reported figure also improved 135.9% from 78 cents per share in the year-ago quarter.

Q2 Revenues

Entergy’s reported revenues of $2,846 million missed the Zacks Consensus Estimate of $3,258.1 million by 12.6%. The figure also declined 16.2% from $3,314.1 million in the year-ago quarter due to lower revenues from all of its segments.

Segmental Results

Utility: The segment’s quarterly earnings came in at $2.42 per share compared with 75 cents in the prior-year quarter.

Parent & Other: The segment incurred a loss of 58 cents per share, wider than the year-ago quarter’s reported loss of 39 cents.

Entergy Corporation Price, Consensus and EPS Surprise

Entergy Corporation Price, Consensus and EPS Surprise

Entergy Corporation price-consensus-eps-surprise-chart | Entergy Corporation Quote

Highlights of the Release

Operating expenses totaled $2.09 billion, down 36.9% from $3.31 billion in the prior-year quarter.

Operating income amounted to $755.9 million, up a massive 831.7% from $81.1 million in the year-ago period.

Total interest expenses were $250.9 million, up 10.6% from $226.9 million in the comparable period of 2022.

As of Jun 30, 2023, total retail customers served by the company increased 0.7% to 3 million.

Financial Highlights

As of Jun 30, 2023, Entergy had cash and cash equivalents of $1,194.3 million compared with $224.2 million as of Dec 31, 2022.

Long-term debt was $24.32 billion as of Jun 30, 2023, compared with $23.62 billion as of Dec 31, 2022.

During the second quarter, ETR generated cash from operating activities of $866.4 million compared with $278 million in the comparable period of 2022.

Guidance for 2023

Entergy reiterated its financial guidance for 2023. The company maintained its adjusted earnings guidance in the range of $6.55-$6.85 per share. The Zacks Consensus Estimate for earnings is currently pegged at $6.69 per share, just below the midpoint of the company’s guided range.

Zacks Rank

Entergy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

NextEra Energy (NEE - Free Report) reported second-quarter 2023 adjusted earnings of 88 cents per share, which beat the Zacks Consensus Estimate of 83 cents by 6%. The bottom line was also up 8.6% from the prior-year quarter’s level. The year-over-year improvement was due to the solid performances of Florida Power & Light Company and NextEra Energy Resources.

For the second quarter, NextEra’s operating revenues totaled $7,349 million, which surpassed the Zacks Consensus Estimate of $6,681 million by 10%. The top line improved 41.8% year over year.

DTE Energy Company (DTE - Free Report) reported second-quarter 2023 operating earnings per share (EPS) of 99 cents, which surpassed the Zacks Consensus Estimate of 89 cents by 11.2%. The bottom line also improved 12.5% from the year-ago quarter’s reported figure of 88 cents.

The company reported GAAP earnings of 97 cents per share compared with 19 cents in the prior-year quarter.

American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2023 operating EPS of $1.13, which lagged the Zacks Consensus Estimate of $1.14 by 0.9%. The bottom line also declined 5.8% from $1.20 a year ago.

American Electric’s second-quarter operating revenues of $4,372.5 million lagged the Zacks Consensus Estimate of $4,686.7 million by 6.7%. The reported figure also decreased 5.8% from the year-ago quarter’s level of $4,639.7 million.

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