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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 2020 adjusted earnings of $1.37 per share, which surpassed the Zacks Consensus Estimate of $1.23 by 11.4%. Moreover, the bottom line improved 1.5% from $1.35 per share in the year-ago quarter.

Excluding the effects of special items, the company registered GAAP earnings of $1.79 per share compared with $1.22 a year ago.

Total Revenues

In the quarter under review, total revenues came in at $2,412.8 million, which lagged the Zacks Consensus Estimate of $2,806 million by 14%. Also, the top line fell 9.5% from the year-ago quarter’s $2,666.2 million.

Segment Results

Utility: The segment’s quarterly adjusted earnings came in at $1.71 per share compared with $1.70 in the prior-year quarter.

Parent & Other: The segment incurred an adjusted loss of 34 cents per share compared with a loss of 35 cents in the prior-year quarter.

Entergy Wholesale Commodities (EWC): The segment registered earnings of 42 cents per share on an as-reported basis against a loss of 13 cents in the year-ago quarter.

Highlights of the Release

Operating expenses in the quarter summed $1,973.5 million, down 15.2% from $2,327.4 million in the year-ago quarter.

Interest expenses were $216.8 million, up 7.8% from $201.1 million in the year-ago quarter.

In the reported quarter, total retail customers served by the company increased 1.1% to nearly 2.94 million.

Entergy Corporation Price, Consensus and EPS Surprise

As of Jun 30, 2020, Entergy had cash and cash equivalents of $935.5 million compared with $425.7 million as of Dec 31, 2019.

Long-term debt was $18.28 billion as of Jun 30, 2020, compared with $17.08 billion as of Dec 31, 2019.

At the end of the first half of 2020, the company generated cash from operating activities of $1,448.3 million, down from $1,053.1 million in the prior-year quarter.

Guidance

For 2020, Entergy reaffirms adjusted EPS of $5.45-$5.75 per share. The Zacks Consensus Estimate for the company’s earnings is currently pegged at $5.54, below the midpoint of the company’s guidance 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 2020 adjusted earnings of $2.61 per share, surpassing the Zacks Consensus Estimate of $2.50 by 4.4%.

FirstEnergy Corporation (FE - Free Report) delivered second-quarter 2020 operating earnings of 57 cents per share, which beat the Zacks Consensus Estimate of 55 cents by 3.64%.

Upcoming Releases

Dominion Energy (D - Free Report) is scheduled to report second-quarter 2020 results on Jul 31. The Zacks Consensus Estimate for quarterly earnings stands at 83 cents per share.

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