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Entergy (ETR) Q3 Earnings Beat Estimates, Revenues Up Y/Y

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Entergy Corporation (ETR - Free Report) reported third-quarter 2019 adjusted earnings of $2.52 per share, which surpassed the Zacks Consensus Estimate of $2.31 by 9.1%. Moreover, the reported figure rose 7.2% from $2.35 per share in the year-ago quarter.
 
Excluding the effects of special items, the company registered GAAP earnings of $1.82 per share compared with $2.92 a year ago.
 
Total Revenues
 
In the quarter under review, total revenues came in at $3,140.6 million, which lagged the Zacks Consensus Estimate of $3,476 million by 9.6%. However, the top line grew 1.2% from the year-ago quarter’s $3,104.3 million.
 
Segment Results
 
Utility: The segment’s quarterly adjusted earnings came in at $2.88 per share compared with $2.75 in the prior-year quarter. The increase can be attributed to higher sales volume, primarily in the unbilled period, and lower nuclear generation O&M expenses.
 
Parent & Other: The segment incurred an adjusted loss of 36 cents per share compared with a loss of 40 cents in the prior-year quarter.
 
Entergy Wholesale Commodities (EWC): The segment registered loss of 70 cents per share on an as-reported basis against earnings of 31 cents in the year-ago quarter.
 
Highlights of the Release
 
Operating expenses in the quarter summed $2,620.6 million, down 7.5% from $2,833.3 million in the year-ago quarter.

Interest expenses were $201.4 million, up 3.1% from $195.3 million in the year-ago quarter.

Total retail customers served by the company rose 0.5% to nearly 2.92 million.

Entergy Corporation Price, Consensus and EPS Surprise

Financial Highlights

As of Sep 30, 2019, Entergy had cash and cash equivalents of $955.8 million compared with $481 million as of Dec 31, 2018.

Long-term debt was $16.94 billion as of Sep 30, 2019, compared with $15.52 billion as of Dec 31, 2018.

At the end of Sep 30, 2019, the company generated cash from operating activities of $1,064.8 million, up from $779.6 million in the prior-year quarter.
 
Guidance
 
For 2019, Entergy narrowed its operational earnings view to $5.25-$5.45 per share from $5.15-$5.45. The Zacks Consensus Estimate for the company’s earnings is currently pegged at $5.30, lower than the mid-point of the company’s guided range.
 
Zacks Rank
 
Entergy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Exelon Corp (EXC - Free Report) is slated to report third-quarter 2019 results on Oct 31. The Zacks Consensus Estimate for earnings is pegged at $1.15 per share.

Dominion Energy (D - Free Report) is scheduled to report third-quarter 2019 results on Nov 1. The Zacks Consensus Estimate for earnings is pegged at 89 cents per share.

A Recent Utility Release

NextEra Energy (NEE - Free Report) reported third-quarter 2019 adjusted earnings of $2.39 per share, beating the Zacks Consensus Estimate of $2.27 by 5.3%. Moreover, the reported earnings rose 10.1% on a year-over-year basis.

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