Entergy Q3 Earnings & Revenues Miss Estimates, but View Up

Zacks

Entergy Corporation ETR reported third-quarter 2015 operational earnings of $1.90 per share, missing the Zacks Consensus Estimate of $1.93 by 1.6%.

The reported number, however, advanced 13.1% from $1.68 per share in the year-ago period. The upside was due to a warmer-than-normal summer this year.

On a GAAP basis, Entergy reported a third quarter 2015 loss of $4.04 per share that includes $5.93 per share of non-cash asset impairments for Pilgrim Nuclear Power Station and James A. Fitzpatrick Nuclear Power Plant.

Revenues

Entergy’s third-quarter operating revenues of $3,371.4 million also fell short of the Zacks Consensus Estimate of $3,577 million by 5.7%. Revenues declined 2.5% from $3,458.1 million in the prior-year quarter.

Operational Results

Entergy’s total operating expenses increased 46% year over year to $4,336.4 million primarily due to asset write-offs, impairments and related charges and other expenses.

Entergy recorded $171.3 million of interest expenses in the quarter compared with $164.5 million incurred last year.

Segment Results

Utility: The segment’s quarterly earnings were $1.72 per share compared with $1.45 per share in third-quarter 2014. The upside was due to 1.2% and 4% respective growth in commercial and industrial sales driven by a warmer-than-normal summer.

Entergy Wholesale Commodities (EWC): Entergy Wholesale Commodities' operating earnings were 18 cents per share for the third quarter. In the corresponding quarter last year, earnings were $23 cents a share. The decline was due to lower nuclear capacity and energy pricing.

Financial Condition

As of Sep 30, 2015, cash and cash equivalents were $1,040.6 million compared with $1,422 million as of Dec 31, 2014.

Long-term debt as of Sep 30, 2015 was $13.1 billion compared with $12.5 billion as of Dec 31, 2014.

In the third quarter of 2015, cash from operating activates was $1,011.3 million, down from $1,362.9 million in the year-ago quarter.

Guidance

Entergy updated its operational earnings guidance to the range of $5.50−$6.10 per share from its earlier expectation of $5.10−$5.90.

Other Utility Releases

PG&E Corporation’s PCG adjusted operating earnings per share of 84 cents in the third quarter of 2015 missed the Zacks Consensus Estimate of 92 cents by 8.7%. The reported figure also declined 51.4% from a year ago.

Edison International EIX reported third-quarter 2015 results, wherein adjusted earnings of $1.16 per share came in ahead of the Zacks Consensus Estimate of $1.10 by 5.5%.

American Electric Power Co., Inc. AEP reported third-quarter 2015 operating earnings of $1.06 per share, beating the Zacks Consensus Estimate of $1.00 by 6%.

Zacks Rank

Entergy currently has a Zacks Rank #4 (Sell).

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