Back to top

Tale of the Tape

Zacks Equity Research

Will Entergy (ETR) Crush Estimates at Its Next Earnings Report?
October 17, 2016

ETR

Trades from $3

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Entergy Corporation (ETR - Free Report) , a firm in the Utility-Electric Power industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, ETR has beaten estimates by at least 15% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, ETR expected to post earnings of $1.17 per share, while it actually produced earnings of $1.35 per share, a beat of 15.4%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of $1.03 per share, when it actually produced earnings of $3.11 per share instead, representing significant positive surprise.

ENTERGY CORP Price and EPS Surprise

 

ENTERGY CORP Price and EPS Surprise | ENTERGY CORP Quote

Thanks in part to this history, recent estimates have been moving higher for Entergy. In fact, the Earnings ESP for ETR is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for ETR, as the firm currently has a Zacks Earnings ESP of 11.64%, so another beat could be around the corner.

This is particularly true when you consider that ETR has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.  

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that ETR could see another beat at its next report, especially if recent trends are any guide. 

Confidential from Zacks

Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>


In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

ENTERGY CORP (ETR) - free report >>