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Entergy (ETR) Set to Report Q1 Earnings: What's in Store?

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Entergy Corporation (ETR - Free Report) is set to release first-quarter 2022 results on Apr 27, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 8.57%.  

Entergy beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 6.29%.

Factors to Consider

In the January-March 2022 quarter, territories served by Entergy witnessed a quite disruptive weather pattern. While for most of the first quarter, average weather prevailed in its service area, in March, some parts experienced warmer-than-normal temperatures. This is likely to have resulted in lower use of heaters, thereby affecting electricity demand.

Entergy Corporation Price and EPS Surprise

Entergy Corporation Price and EPS Surprise

Entergy Corporation price-eps-surprise | Entergy Corporation Quote

Also, some tornadoes accompanied by damaging winds affected a vast portion of Entergy’s service area during the first quarter, which must have caused widespread outages for its customers, thereby hurting the top-line performance.  

The Zacks Consensus Estimate for Entergy’s first-quarter revenues, pegged at $2.76 billion, indicates a decline of 3.1% from the year-ago quarter’s reported figure.

As discussed above, the tornadoes along with damaging winds must have caused widespread damage to its poles and electricity infrastructure. Reportedly, these tornadoes caused catastrophic damages in some parts of Entergy’s service areas and thus are expected to have pushed up the operational expenses of this utility provider, thereby impacting its quarterly earnings performance. Also increased fuel costs might have had an unfavorable impact on the bottom line.

The Zacks Consensus Estimate for Entergy’s first-quarter earnings is pegged at $1.34 per share, indicating a decrease of 8.8% from the year-ago quarter’s reported figure.

Earnings Whispers

Our proven model predicts an earnings beat for Entergy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

Earnings ESP: The company’s Earnings ESP is +2.79%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Entergy carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Here are three Utilities players you may want to consider, as these also have the right combination of elements to post an earnings beat this season:

American Electric Power (AEP - Free Report) has an Earnings ESP of +0.28% and a Zacks Rank #3. The stock boasts a long-term earnings growth rate of 5.8%.

The Zacks Consensus Estimate for American Electric’s first-quarter revenues and earnings is pegged at $4.52 billion and $1.20, respectively. AEP has a four-quarter average earnings surprise of 0.15%.

PG&E Corp (PCG - Free Report) has an Earnings ESP of +1.96% and a Zacks Rank #3. The stock boasts a long-term earnings growth rate of 2.5%.

The Zacks Consensus Estimate for PG&E Corp.’s first-quarter revenues and earnings is pegged at $4.97 billion and 26 cents, respectively. PCG has a four-quarter average negative earnings surprise of 8.11%.

NiSource (NI - Free Report) has an Earnings ESP of +2.67% and a Zacks Rank #2. The stock boasts a long-term earnings growth rate of 7.2%.

The Zacks Consensus Estimate for NiSource’s first-quarter revenues and earnings is pegged at $1.87 billion and 75 cents, respectively. NI has a four-quarter average earnings surprise of 1.37%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.