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Entergy (ETR) Beats Q2 Earnings Estimates, Lifts '17 View

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Entergy Corporation (ETR - Free Report) reported second-quarter 2017 operational earnings of $3.11 per share, beating the Zacks Consensus Estimate of $1.20 by 159.2%. However, the reported number was in line with the year-ago figure.
 
On a GAAP basis, Entergy posted earnings of $2.27 per share compared with $3.16 a year ago. The difference between GAAP and operating earnings in the reported quarter was due to effects of special items of 84 cents.

Total Revenue

In the quarter under review, the company reported total revenue of $2,618.6 million, beating the Zacks Consensus Estimate of $2,444 by 7.1%. It was also up 6.3% from the year-ago figure of $2,462.6 million.

Segment Results

Utility, Parent & Other: The segment’s quarterly earnings were $1.03 per share compared with $1.77 in the prior-year quarter.

Entergy Wholesale Commodities (EWC): The segment reported operating earnings of $2.08 per share compared with $1.34 in the year-ago quarter.

Highlights of the Release

Operating expenses in the quarter were $2.48 billion, up 22.5% from $2.02 billion spent in the year-ago quarter. The year-over-year increase was primarily owing to higher fuel, fuel related expenses, and gas purchased for resale, purchased power, and other operation and maintenance expenses, asset write-offs, impairments and related charges.

Interest expenses were $173.4 million, down 2.4% from the year-ago quarter.

In the reported quarter, total retail customers served by the company increased 0.8% to nearly 2.9 million.

Entergy Corporation Price, Consensus and EPS Surprise

Entergy Corporation Price, Consensus and EPS Surprise | Entergy Corporation Quote

Financial Highlights

As of Jun 30, the company had cash and cash equivalents of $934.5 million compared with $1,187.8 million as of Dec 31, 2016.

Total debt, as of Jun 30, was $14.3 billion compared with $14.5 billion as of Dec 31, 2016.

For second-quarter 2017, cash from operating activities was $290.3 million, down from $719.3 million in the prior-year quarter.

Guidance

For 2017, Entergy raised its operational earnings guidance per share in the band of $6.80−$7.40 compared with prior guidance of $4.75−$5.35.

The Utility, Parent & Other’s adjusted earnings are still expected in the range of $4.25–$4.55 per share.

Zacks Rank

Entergy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

DTE Energy Company (DTE - Free Report) reported second-quarter 2017 operating earnings per share (EPS) of $1.07, which surpassed the Zacks Consensus Estimate of 97 cents by 10.3%. Operating earnings also grew 9.2% from the year-ago figure of 98 cents.

NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2017 adjusted earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.76 by 5.7%. Reported earnings were also up by 11.4% year over year.

WEC Energy Group (WEC - Free Report) reported second-quarter 2017 adjusted earnings of 63 cents per share, surpassing the Zacks Consensus Estimate of 59 cents by 6.8% and the year-ago figure of 57 cents by 10.5%.

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