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Entergy (ETR) to Report Q1 Earnings: What's in the Cards?

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Entergy Corporation (ETR - Free Report) is set to release first-quarter 2020 results on May 11, before the opening bell. In the last reported quarter, the company delivered a positive earnings surprise of 3.03%.

Entergy missed the Zacks Consensus Estimate in two out of four trailing quarters and beat the consensus mark in the other two, the average negative surprise being 0.71%.

Let’s see how things have shaped up prior to this announcement.

Factors to Consider

In the January-March 2020 quarter, Entergy witnessed mixed weather patterns at its service territories. While the majority of its service areas experienced warmer-than-normal winter, a few areas witnessed below-normal temperature. These factors are expected to have been reflected in revenues.

Entergy Corporation Price and EPS Surprise

Entergy Corporation Price and EPS Surprise

Entergy Corporation price-eps-surprise | Entergy Corporation Quote

Moreover, new rates for Entergy Arkansas that became effective since January 2020 are likely to have boosted the company’s first-quarter top line.

The Zacks Consensus Estimate for Entergy’s first-quarter revenues, pegged at $3.68 billion, indicates an improvement of 2.7% from the year-ago quarter.

While revenue growth is expected to have contributed to the company’s quarterly earnings, factors like gains from the decommissioning trust fund investments and lower asset write-offs must also have bolstered the company’s bottom linein the first quarter.

The Zacks Consensus Estimate for Entergy’s first-quarter earnings, pegged at 94 cents per share, indicates an improvement of 14.6% from the year-ago quarter.

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 #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stock to Consider

Here is a company from the Utilities sector that has the right combination of elements to post an earnings beat when it reports results.

Spire Inc. (SR - Free Report) has an Earnings ESP of +0.17% and a Zacks Rank #3. The company is set to announce second-quarter fiscal 2020 results on May 8.

Recent Utility Releases

American Electric Power Co., Inc. (AEP - Free Report) reported first-quarter 2020 adjusted earnings per share of $1.02, which missed the Zacks Consensus Estimate of $1.09 by 6.4%.

Public Service Enterprise Group Inc. (PEG - Free Report) reported first-quarter 2020 adjusted operating earnings of $1.03 per share, which came in line with the Zacks Consensus Estimate.

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