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Entergy (ETR) Up 2.8% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Entergy (ETR - Free Report) . Shares have added about 2.8% 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 the most recent earnings report in order to get a better handle on the important drivers.
Entergy's Q3 Earnings Beat Estimates, Revenues Fall Y/Y
Entergy reported third-quarter 2023 adjusted earnings of $3.27 per share, which surpassed the Zacks Consensus Estimate of $2.97 by 10.1%. The bottom line also improved 15.1% from $2.84 reported in the year-ago quarter.
The company reported GAAP earnings per share of $3.14, up from the year-ago quarter’s level of $2.74.
The year-over-year upside in earnings was driven by the effects of weather on retail volume, the net effect of regulatory actions across the operating companies, lower other operating and maintenance expenses, and higher other income from affiliate preferred investments.
Q3 Revenues
Entergy reported revenues of $3,595.5 million, which missed the Zacks Consensus Estimate of $4,222.8 million by 14.9%. The figure also declined 14.8% from $4,218.6 million reported in the year-ago quarter due to lower revenues from all of its segments.
Segmental Results
Utility: The segment’s quarterly earnings were $3.54 per share compared with $3.29 in the prior-year quarter.
Parent & Other: The segment incurred an adjusted loss of 55 cents per share, wider than the year-ago quarter’s reported adjusted loss of 45 cents.
Highlights of the Release
Operating expenses totaled $2,452.1 million, down 24.9% from $3,263.9 billion recorded in the prior-year quarter.
Operating income amounted to $1,143.3 million, up 19.8% from $954.7 million registered in the year-ago period.
Total interest expenses were $255.4 million, up 12.3% from $227.5 million reported in the comparable period of 2022.
As of Sep 30, 2023, total retail customers served by the company increased 0.8% to 3.02 million.
Financial Highlights
As of Sep 30, 2023, Entergy had cash and cash equivalents of $1,519.8 million compared with $224.2 million as of Dec 31, 2022.
Long-term debt totaled $24.66 billion as of Sep 30, 2023, compared with $23.62 billion as of Dec 31, 2022.
As of Sep 30, 2023, ETR generated cash from operating activities of $3,231 million compared with $1,809.4 million in the comparable period of 2022.
Guidance for 2023
Entergy updated its financial guidance for 2023. The company now expects adjusted earnings in the range of $6.65-$6.85 per share, narrower than the prior guidance of $6.55-$6.85. The Zacks Consensus Estimate for earnings is currently pegged at $6.72 per share, lower than the midpoint of the company’s guided range.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -9.46% due to these changes.
VGM Scores
At this time, Entergy has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% 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 broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Entergy has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Entergy is part of the Zacks Utility - Electric Power industry. Over the past month, PG&E (PCG - Free Report) , a stock from the same industry, has gained 2.5%. The company reported its results for the quarter ended September 2023 more than a month ago.
PG&E reported revenues of $5.89 billion in the last reported quarter, representing a year-over-year change of +9.2%. EPS of $0.24 for the same period compares with $0.29 a year ago.
For the current quarter, PG&E is expected to post earnings of $0.46 per share, indicating a change of +76.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +10.5% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for PG&E. Also, the stock has a VGM Score of B.
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Entergy (ETR) Up 2.8% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Entergy (ETR - Free Report) . Shares have added about 2.8% 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 the most recent earnings report in order to get a better handle on the important drivers.
Entergy's Q3 Earnings Beat Estimates, Revenues Fall Y/Y
Entergy reported third-quarter 2023 adjusted earnings of $3.27 per share, which surpassed the Zacks Consensus Estimate of $2.97 by 10.1%. The bottom line also improved 15.1% from $2.84 reported in the year-ago quarter.
The company reported GAAP earnings per share of $3.14, up from the year-ago quarter’s level of $2.74.
The year-over-year upside in earnings was driven by the effects of weather on retail volume, the net effect of regulatory actions across the operating companies, lower other operating and maintenance expenses, and higher other income from affiliate preferred investments.
Q3 Revenues
Entergy reported revenues of $3,595.5 million, which missed the Zacks Consensus Estimate of $4,222.8 million by 14.9%. The figure also declined 14.8% from $4,218.6 million reported in the year-ago quarter due to lower revenues from all of its segments.
Segmental Results
Utility: The segment’s quarterly earnings were $3.54 per share compared with $3.29 in the prior-year quarter.
Parent & Other: The segment incurred an adjusted loss of 55 cents per share, wider than the year-ago quarter’s reported adjusted loss of 45 cents.
Highlights of the Release
Operating expenses totaled $2,452.1 million, down 24.9% from $3,263.9 billion recorded in the prior-year quarter.
Operating income amounted to $1,143.3 million, up 19.8% from $954.7 million registered in the year-ago period.
Total interest expenses were $255.4 million, up 12.3% from $227.5 million reported in the comparable period of 2022.
As of Sep 30, 2023, total retail customers served by the company increased 0.8% to 3.02 million.
Financial Highlights
As of Sep 30, 2023, Entergy had cash and cash equivalents of $1,519.8 million compared with $224.2 million as of Dec 31, 2022.
Long-term debt totaled $24.66 billion as of Sep 30, 2023, compared with $23.62 billion as of Dec 31, 2022.
As of Sep 30, 2023, ETR generated cash from operating activities of $3,231 million compared with $1,809.4 million in the comparable period of 2022.
Guidance for 2023
Entergy updated its financial guidance for 2023. The company now expects adjusted earnings in the range of $6.65-$6.85 per share, narrower than the prior guidance of $6.55-$6.85. The Zacks Consensus Estimate for earnings is currently pegged at $6.72 per share, lower than the midpoint of the company’s guided range.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -9.46% due to these changes.
VGM Scores
At this time, Entergy has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% 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 broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Entergy has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Entergy is part of the Zacks Utility - Electric Power industry. Over the past month, PG&E (PCG - Free Report) , a stock from the same industry, has gained 2.5%. The company reported its results for the quarter ended September 2023 more than a month ago.
PG&E reported revenues of $5.89 billion in the last reported quarter, representing a year-over-year change of +9.2%. EPS of $0.24 for the same period compares with $0.29 a year ago.
For the current quarter, PG&E is expected to post earnings of $0.46 per share, indicating a change of +76.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +10.5% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for PG&E. Also, the stock has a VGM Score of B.