It has been about a month since the last earnings report for Entergy (ETR Quick QuoteETR - Free Report) . Shares have added about 7.7% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Entergy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Entergy Q1 Earnings Beat Estimates, Revenues Miss

Entergy Corporation reported first-quarter 2020 adjusted earnings of $1.14 per share, which exceeded the Zacks Consensus Estimate of 94 cents by 21.3%. Moreover, the reported figure soared 39% from 82 cents registered in the year-ago quarter.
 
Excluding the effects of special items, the company registered GAAP earnings of 59 cents per share compared with $1.32 a year ago.
 
Total Revenues
 
In the quarter under review, total revenues came in at $2,427.2 million, which lagged the Zacks Consensus Estimate of $2,679 million by 9.4%. Also, the top line declined 7% from the year-ago quarter’s $2,609.6 million. The year-over-year decline is primarily attributable to lower electric and natural gas sales.

Segment Results
 
Utility: The segment’s quarterly adjusted earnings came in at $1.59 per share compared with $1.20 in the prior-year quarter. This was led by higher nuclear insurance refunds as well as lower fossil and nuclear-generation spending.
 
Parent & Other: The segment incurred adjusted loss of 45 cents per share compared with a loss of 38 cents in the prior-year quarter, primarily due to higher income tax expenses resulting from the IRS settlement related to Hurricane Isaac Act 55 financing.
 
Entergy Wholesale Commodities (EWC): The segment incurred a loss of 55 cents per share on an as-reported basis against earnings of 50 cents registered in the year-ago quarter. The decline was led by losses on decommissioning trust funds and lower nuclear pricing along with lower other O&M expenses due to the shutdown of the Pilgrim Nuclear Power Station.
 
Highlights of the Release
 
Operating expenses in the quarter summed $2,027.4 million, down 12.8% from $2,326.3 million in the year-ago quarter.
 
Interest expenses were $205.6 million, up 2.3% from $201 million in the year-ago quarter.
 
In the reported quarter, total retail customers served by the company grew 0.6% to nearly 2.92 million.

Financial Highlights

As of Mar 31, 2020, Entergy had cash and cash equivalents of $955.8 million compared with $425.7 million as of Dec 31, 2019.

Long-term debt was $16.94 billion as of Mar 31, 2020, compared with $17.1 billion as of Dec 31, 2019.
 
At the end of the first three months of 2020, the company generated cash from operating activities of $659.1 million, up from $501.2 million in the prior-year quarter.
 
Guidance
 
For 2020, Entergy affirms adjusted EPS of $5.45-$5.75 per share. The Zacks Consensus Estimate for the company’s earnings is currently pegged at $5.52, below the midpoint of the company’s guided range.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision flatlined during the past month.

VGM Scores

At this time, Entergy has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Entergy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.