Entergy Q2 Earnings & Revenues Miss Estimates, Down Y/Y

Zacks

Entergy Corporation ETR reported second-quarter 2015 operational earnings of 83 cents per share, widely missing the Zacks Consensus Estimate of $1.13 by 26.5%.

The reported number also declined 25.2% from $1.11 per share in the year-ago period. The downside was due to bleak performance at all its three segments.

Revenues

Entergy’s second-quarter operating revenues of $2,713.2 million also fell short of the Zacks Consensus Estimate by 7.9%. Revenues declined 9.5% from $2,996.7 million in the prior year.

Operational Results

Entergy’s total operating expenses declined 8.1% year over year to $2,335.8 million primarily due to lower input costs.

Operating income for the second quarter also dropped nearly 17% to $377.4 million.

Entergy recorded $159.8 million of interest expenses in the quarter compared with $155.8 million incurred last year.

Segment Results

Utility: The segment’s quarterly operating revenues were $2,273.9 million compared with $2,409.4 million in second-quarter 2014. The downside was due to a 0.2% and 1.5% respective decline in commercial and industrial sales.

Entergy Wholesale Commodities (EWC): Entergy Wholesale Commodities' operating revenues were $439.3 million for the second quarter. In the corresponding quarter last year, revenues were $587.3 million. The decline was due to lower wholesale power prices and less of nuclear generation. Closure of the Vermont Yankee Nuclear Power Station last year also played a role in pulling down this segment’s results.

Financial Condition

As of Jun 30, 2015, cash and cash equivalents were $910.4 million compared with $1,422 million as of Dec 31, 2014.

Long-term debt as of Jun 30, 2015 was $12.1 billion compared with $12.5 billion as of Dec 31, 2014.

In the second quarter of 2015, cash from operating activates was $727.4 million, down from $761.4 million in the year-ago quarter.

Guidance

Entergy affirmed its 2015 earnings guidance in the range of $5.10–$5.90 per share on an operational basis.

Other Utility Releases

American Electric Power Co., Inc. AEP reported second-quarter 2015 operating earnings of 88 cents per share, beating the Zacks Consensus Estimate of 81 cents by 8.6%.

Edison International EIX reported second-quarter 2015 results wherein its adjusted earnings of $1.15 per share came in ahead of the Zacks Consensus Estimate of 81 cents by 42%.

Public Service Enterprise Group Inc. PEG or PSEG reported second-quarter 2015 operating earnings of 57 cents per share, surpassing the Zacks Consensus Estimate of 54 cents by 5.6%.

Zacks Rank

Entergy currently has a Zacks Rank #3 (Hold).

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