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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