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What's in Store for Entergy (ETR) This Earnings Season?

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Entergy Corporation (ETR - Free Report) is set to release third-quarter 2019 results on Oct 30, before the opening bell. In the last reported quarter, the company delivered a negative earnings surprise of 2.17%.

Let’s see how things are shaping up prior to this announcement.

Factors to Consider

During the third quarter, majority of Entergy’s service territories witnessed warmer-than-expected weather. This might have led to higher electricity demand, which in turn is expected to have contributed to the company’s third-quarter revenues.

In line with this, the Zacks Consensus Estimate for third-quarter revenues is pegged at $3.48 billion that indicates 12% increase from the year-ago quarter’s reported figure.

Entergy has been witnessing higher interest expenses since the past two quarters due to issuance of mortgage bonds and higher variable interest rates on commercial paper in 2019. The trend is likely to have continued in the third quarter, which might have put pressure on the company’s bottom line.

Moreover, many parts of its service territories were affected by Hurricane Barry in July. Also, a few other storms reported in the area might have disrupted smooth flow of electricity through the company’s power lines and damaged infrastructures. This is likely to have pushed up Entergy’s quarterly expenses for restoring power and other associated restructuring costs.

Considering the abovementioned factors, the Zacks Consensus Estimate for Entergy’s third-quarter earnings is pegged at $2.31 per share. The projected figure calls for a decline of 38.7% from the year-ago quarter’s levels.

In August, the company completed the sale of the Pilgrim Nuclear Power Station to a subsidiary of Holtec International. Sales proceeds from the divestment are likely to get reflected on third-quarter results.

Earnings Whispers

Our proven model doesn’t conclusively predict 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. But that’s not the case here.

Earnings ESP: The company’s Earnings ESP is 0.00%. 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 #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Entergy Corporation Price and EPS Surprise

 

Entergy Corporation Price and EPS Surprise

Entergy Corporation price-eps-surprise | Entergy Corporation Quote

 

Stocks to Consider

Here some companies that you may consider from the same industry as these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Pacific Gas & Electric (PCG - Free Report) is expected to release third-quarter results soon. It has an Earnings ESP of +3.03% and a Zacks Rank of 3.

CenterPoint Energy (CNP - Free Report) is set to release third-quarter results on Nov 07. It has an Earnings ESP of +0.12% and has a Zacks Rank #3.

Eversource Energy (ES - Free Report) is scheduled to release third-quarter results on Nov 06. It has an Earnings ESP of +1.06% and a Zacks Rank of 2.

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