It has been about a month since the last earnings report for Entergy (ETR Quick QuoteETR - Free Report) . Shares have added about 11.7% in that time frame, outperforming 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 the most recent earnings report in order to get a better handle on the important catalysts.

Entergy’s Q4 Earnings Beat Estimates, Revenues Misses

Entergy Corporation reported fourth-quarter 2020 adjusted earnings of 71 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents by 4.4%. However, the reported figure also increased 4.4% from 68 cents in the year-ago quarter.

Excluding the effects of special items, the company reported GAAP earnings of $1.93 per share compared to the GAAP earnings of $1.92 a year ago.

For 2020, the company reported adjusted earnings of $5.66 per share, which outpaced the Zacks Consensus Estimate of $5.64 by 0.4%. The bottom line also grew 4.8% from $5.40 in the prior year.

Total Revenues

Entergy Corp.’s fourth-quarter revenues of $2,370.1 million missed the Zacks Consensus Estimate of $2,500 million by 5.2%. Further, revenues declined 2.5% from $2,462.3 million in the year-ago quarter, primarily due to low Electric and Natural gas revenues.

For 2020, the company’s total revenues amounted to $10.11 billion, which missed the Zacks Consensus Estimate of $11.17 billion by 9.5%. Further, the reported figure slipped 7.1% from the year-ago quarter’s $10.88 billion.

Segment Results

Utility: The segment’s quarterly adjusted earnings came in at $1.03 per share, compared to the $1.14 earnings in the prior-year quarter.

Parent & Other: The segment incurred an adjusted loss of 32 cents per share compared with a loss of 46 cents in the prior-year quarter.

Highlights of the Release

Operating expenses in the quarter summed $2.22 billion, up 0.2% from $2.21 billion in the year-ago quarter.

Operating income during the quarter totaled $152.1 million compared to the income of $248.5 million in the year-ago quarter.

Interest expenses were $207.8 million, up 1.9% from $203.9 million in the year-ago quarter.

In the reported quarter, total retail customers served by the company increased 1% to nearly 2.95 million.

Financial Highlights

As of Dec 31, 2020, the company had cash and cash equivalents of $1,759.1 million compared with $425.7 million, as of Dec 31, 2019.

Long-term debt was $21.2 billion at the end of 2020, compared with $17.1 billion, as of Dec 31, 2019.

At the end of 2020, the company generated cash from operating activities of $2.69 billion, down from $2.82billion in the prior year.

Guidance 2021

For 2021, Entergy expects operational earnings of $5.80-$6.10 per share. The Zacks Consensus Estimate for the company’s earnings is currently pegged at $5.88 per share, lower than the midpoint of the guided range.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 7.92% due to these changes.

VGM Scores

At this time, Entergy has a poor Growth Score of F, however its Momentum Score is doing a lot 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Entergy has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.