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Entergy Corp (ETR) Q1 Earnings Beat Estimates, Revenues Miss

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Entergy Corporation (ETR - Free Report) reported first-quarter 2020 adjusted earnings of $1.14 per share, which exceeded the Zacks Consensus Estimate of 94 cents by 21.3%. Moreover, the reported figure soared 39% from 82 cents registered in the year-ago quarter.
 
Excluding the effects of special items, the company registered GAAP earnings of 59 cents per share compared with $1.32 a year ago.
 
Total Revenues
 
In the quarter under review, total revenues came in at $2,427.2 million, which lagged the Zacks Consensus Estimate of $2,679 million by 9.4%. Also, the top line declined 7% from the year-ago quarter’s $2,609.6 million. The year-over-year decline is primarily attributable to lower electric and natural gas sales.

Segment Results
 
Utility: The segment’s quarterly adjusted earnings came in at $1.59 per share compared with $1.20 in the prior-year quarter. This was led by higher nuclear insurance refunds as well as lower fossil and nuclear-generation spending.
 
Parent & Other: The segment incurred adjusted loss of 45 cents per share compared with a loss of 38 cents in the prior-year quarter, primarily due to higher income tax expenses resulting from the IRS settlement related to Hurricane Isaac Act 55 financing.
 
Entergy Wholesale Commodities (EWC): The segment incurred a loss of 55 cents per share on an as-reported basis against earnings of 50 cents registered in the year-ago quarter. The decline was led by losses on decommissioning trust funds and lower nuclear pricing along with lower other O&M expenses due to the shutdown of the Pilgrim Nuclear Power Station.
 
Highlights of the Release
 
Operating expenses in the quarter summed $2,027.4 million, down 12.8% from $2,326.3 million in the year-ago quarter.
 
Interest expenses were $205.6 million, up 2.3% from $201 million in the year-ago quarter.
 
In the reported quarter, total retail customers served by the company grew 0.6% to nearly 2.92 million.

Entergy Corporation Price, Consensus and EPS Surprise

Financial Highlights

As of Mar 31, 2020, Entergy had cash and cash equivalents of $955.8 million compared with $425.7 million as of Dec 31, 2019.

Long-term debt was $16.94 billion as of Mar 31, 2020, compared with $17.1 billion as of Dec 31, 2019.
 
At the end of the first three months of 2020, the company generated cash from operating activities of $659.1 million, up from $501.2 million in the prior-year quarter.
 
Guidance
 
For 2020, Entergy affirms adjusted EPS of $5.45-$5.75 per share. The Zacks Consensus Estimate for the company’s earnings is currently pegged at $5.52, below the midpoint of the company’s guided range.
 
Zacks Rank
 
Entergy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

FirstEnergy Corporation (FE - Free Report) delivered first-quarter 2020 operating earnings of 66 cents per share, which beat the Zacks Consensus Estimate of 64 cents by 3.13%.

NextEra Energy (NEE - Free Report) reported first-quarter 2020 adjusted earnings of $2.38 per share, which surpassed the Zacks Consensus Estimate of $2.21 by 7.7%.

CMS Energy Corporation (CMS - Free Report) reported first-quarter 2020 adjusted EPS of 86 cents, which surpassed the Zacks Consensus Estimate of 77 cents by 11.7%.

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