Back to top

Image: Bigstock

Entergy Gears Up to Report Q2 Earnings: What's in the Cards?

Read MoreHide Full Article

Key Takeaways

  • Entergy will report Q2 results on July 30, with expected sales of $3.13B and EPS of 85 cents.
  • Warmer weather and strong industrial demand are likely to have supported ETR's revenue growth this quarter.
  • High operating costs and interest expenses may have weighed on Entergy's Q2 earnings performance.

Entergy Corporation (ETR - Free Report) is scheduled to release its second-quarter 2025 earnings on July 30, before market open. 

The company delivered an earnings surprise of 32.26% in the last reported quarter. Entergy holds a four-quarter average earnings surprise of 12.06%.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors to Consider Ahead of ETR’s Q2 Results

In the second quarter, Entergy’s service territories experienced warmer-than-normal temperature patterns. Such a weather pattern is likely to have boosted electricity demand from its customers for cooling purposes this spring. This might have improved Entergy’s top-line performance.

Higher industrial sales, driven by industrial customer growth, along with increasing data center demand in its service areas, are also likely to have bolstered ETR’s second-quarter revenues.

However, adverse weather patterns, including severe rainfall, along with floods and several tornadoes, affected Entergy’s service territories during the second quarter, which may have disrupted the company’s services in those areas. This is likely to have resulted in outages for some of its customers, partially impacting ETR’s overall revenues.

The adverse weather conditions mentioned above might have also caused some structural damage to the company’s infrastructure, pushing up operating expenses for the restoration of its damaged infrastructure. This, along with higher interest expenses, is likely to have hurt ETR’s second-quarter earnings.

Also, higher year-over-year operations and maintenance (O&M) expenses projected by the company owing to planned power generation spending, including the timing of outages and vegetation management expenses, must have adversely impacted ETR’s bottom-line growth in the soon-to-be-reported quarter. 

Nevertheless, strong sales expectations and favorable returns from its prior capital investment plans in infrastructural upgrades must have favorably contributed to the company’s overall quarterly bottom-line performance.

Entergy Corporation Price and EPS Surprise

Entergy Corporation Price and EPS Surprise

Entergy Corporation price-eps-surprise | Entergy Corporation Quote

Q2 Expectations for Entergy

The Zacks Consensus Estimate for ETR’s sales is pegged at $3.13 billion, which indicates year-over-year growth of 6%.

The consensus estimate for earnings per share is pegged at 85 cents, which implies a year-over-year decline of 11.5%.

What the Zacks Model Unveils for Entergy

Our proven model predicts an earnings beat for ETR this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.

Earnings ESP: ETR has an Earnings ESP of +7.06%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Other Stocks to Consider

Below we have mentioned players from the same industry that also have the right combination of elements to beat earnings in the upcoming releases.

IDACORP Inc. (IDA - Free Report) is expected to report its second-quarter 2025 results on July 31, before market open. It has an Earnings ESP of +2.34% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for sales is pegged at $453.4 million, which indicates a 0.5% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pegged at $1.71 per share.

American Electric Power (AEP - Free Report) is scheduled to report its second-quarter 2025 results on July 30, before market open. It has an Earnings ESP of +10.63% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for sales is pegged at $4.78 billion, which indicates a 4.4% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pegged at $1.16 per share.

Xcel Energy Inc. (XEL - Free Report) is slated to report its second-quarter 2025 results on July 31, before market open. It has an Earnings ESP of +1.76% and a Zacks Rank of 3 at present. 

The Zacks Consensus Estimate for second-quarter sales is pegged at $3.31 billion, which calls for a 9.3% improvement from the year-ago quarter’s figure. The consensus estimate for earnings stands at 62 cents per share.

Published in