With a market cap of $28.8 billion, Entergy Corporation (ETR) operates primarily in the electric power production and retail distribution sector. It serves over 3 million customers across Arkansas, Louisiana, Mississippi, and Texas, with a generation capacity of around 24,000 megawatts through various sources, including gas, nuclear, and renewables. The New Orleans, Louisiana-based company is expected to announce its fiscal Q3 earnings results before the market opens on Thursday, Oct. 31.
Ahead of this event, analysts expect the power company to report a profit of $2.99 per share, down 8.6% from $3.27 per share in the previous year's quarter. The company has surpassed Wall Street's bottom-line estimates in two of the past four quarters while missing on two other occasions. ETR exceeded the consensus EPS estimate by 8.5% in the most recent quarter.
For fiscal 2024, analysts expect ETR to report EPS of $7.22, up 6.7% from $6.77 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow 7.2% year-over-year to $7.74.
ETR has gained 33.5% on a YTD basis, outperforming both the S&P 500 Index's ($SPX) 22.7% rise and the Utilities Select Sector SPDR Fund's (XLU) 28.9% return over the same period.
Shares of Entergy rose 4.2% on Aug. 1 due to the stronger-than-expected Q2 adjusted earnings of $1.92 per share. The company also reported revenue of around $3 billion, representing a year-over-year increase of 3.8%, which indicated robust performance across all segments and alleviated investor concerns about the revenue miss. Furthermore, the company’s unchanged financial guidance for 2024, projecting adjusted earnings in the range of $7.05 per share to $7.35 per share, reassured investors regarding Entergy's outlook and stability despite rising operating and interest expenses.
Analysts' consensus rating on Entergy's stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 18 analysts covering the stock, opinions include 12 "Strong Buys," one "Moderate Buy," four "Holds," and one "Strong Sell." This consensus is more bullish than three months ago, with nine analysts suggesting a "Strong Buy." As of writing, ETR is trading above the average analyst price target of $129.81.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
