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What's in Store for Entergy (ETR) This Earnings Season?
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Entergy Corporation (ETR - Free Report) will release fourth-quarter 2017 results on Feb 23, before the opening bell.
Last quarter, the company delivered a positive earnings surprise of 7.31%. Moreover, Entergy Corp. outperformed the Zacks Consensus Estimate in three of the trailing four quarters, with an average beat of 85.43%.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Most of the company's service territories witnessed warmer-than-normal winters during the quarter under review. This has lowered demand for electricity in these regions, which in turn, is expected to weigh on the company’s fourth-quarter sales.
The Zacks Consensus Estimate for Entergy Corp.’s fourth-quarter sales of $2.33 billion marks a year-over-year decline of 12.2%.
In October 2017, the Louisiana Public Service Commission approved the recovery of nuclear dry fuel storage costs incurred by Entergy Corp. earlier. The move is expected to boost the company’s fourth-quarter earnings. Our consensus estimate for fourth-quarter earnings of 42 cents per share reflects an annual growth of 35.5%.
Moreover, during the fourth quarter, Entergy Corp. raised its quarterly dividend by 2.3% to 89 cents per share. This indicates improved cash inflow from operating activities for the company which we believe will drive its fourth-quarter results.
Earnings Whispers
Our proven model does not show that Entergy Corp. is likely to beat earnings this quarter. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. This is not the case here, as you will see below.
Zacks ESP: Entergy Corp. has an Earnings ESP of -2.06%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Entergy Corp. carries a Zacks Rank #3. However, the company’s negative Earnings ESP makes surprise prediction difficult.
Conversely, we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Here are a few operators in the utility space that you may consider, as our model shows that they have the right combination of elements to deliver an earnings beat this quarter:
Public Service Enterprise (PEG - Free Report) has an Earnings ESP of +1.92% and a Zacks Rank #3. The company is scheduled to report fourth-quarter results on Feb 23.
Pinnacle West Capital (PNW - Free Report) has an Earnings ESP of +12.20% and a Zacks Rank #3. The company is scheduled to report fourth-quarter results on Feb 23.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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What's in Store for Entergy (ETR) This Earnings Season?
Entergy Corporation (ETR - Free Report) will release fourth-quarter 2017 results on Feb 23, before the opening bell.
Last quarter, the company delivered a positive earnings surprise of 7.31%. Moreover, Entergy Corp. outperformed the Zacks Consensus Estimate in three of the trailing four quarters, with an average beat of 85.43%.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Most of the company's service territories witnessed warmer-than-normal winters during the quarter under review. This has lowered demand for electricity in these regions, which in turn, is expected to weigh on the company’s fourth-quarter sales.
The Zacks Consensus Estimate for Entergy Corp.’s fourth-quarter sales of $2.33 billion marks a year-over-year decline of 12.2%.
In October 2017, the Louisiana Public Service Commission approved the recovery of nuclear dry fuel storage costs incurred by Entergy Corp. earlier. The move is expected to boost the company’s fourth-quarter earnings. Our consensus estimate for fourth-quarter earnings of 42 cents per share reflects an annual growth of 35.5%.
Moreover, during the fourth quarter, Entergy Corp. raised its quarterly dividend by 2.3% to 89 cents per share. This indicates improved cash inflow from operating activities for the company which we believe will drive its fourth-quarter results.
Earnings Whispers
Our proven model does not show that Entergy Corp. is likely to beat earnings this quarter. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. This is not the case here, as you will see below.
Zacks ESP: Entergy Corp. has an Earnings ESP of -2.06%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Entergy Corp. carries a Zacks Rank #3. However, the company’s negative Earnings ESP makes surprise prediction difficult.
Conversely, we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Entergy Corporation Price and EPS Surprise
Entergy Corporation Price and EPS Surprise | Entergy Corporation Quote
Stocks to Consider
Here are a few operators in the utility space that you may consider, as our model shows that they have the right combination of elements to deliver an earnings beat this quarter:
Edison International (EIX - Free Report) has an Earnings ESP of +1.44% and a Zacks Rank #3. The company is scheduled to report fourth-quarter results on Feb 22. You can see the complete list of today’s Zacks #1 Rank stocks here.
Public Service Enterprise (PEG - Free Report) has an Earnings ESP of +1.92% and a Zacks Rank #3. The company is scheduled to report fourth-quarter results on Feb 23.
Pinnacle West Capital (PNW - Free Report) has an Earnings ESP of +12.20% and a Zacks Rank #3. The company is scheduled to report fourth-quarter results on Feb 23.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>