Entergy (ETR) Q2 Earnings Beat Estimates, Revenues Up Y/Y

Entergy Corporation ETR reported second-quarter 2018 adjusted earnings of $1.79 per share, which surpassed the Zacks Consensus Estimate of $1.26 by 42.1%. However, the reported figure declined 42.4% from $3.11 in the year-ago quarter.

Excluding a one-time tax benefit of 31 cents, the company’s GAAP earnings came in at $1.34 per share compared with $2.27 a year ago.

Revenues

In the quarter under review, revenues totaled $2.67 billion, which exceeded the Zacks Consensus Estimate of $2.55 billion by 4.5%. The top-line figure reflected year-over-year growth of 1.9% from $2.62 billion in the first quarter. The upside was driven by higher sales volume.

Segment Results

Utility: The segment’s quarterly adjusted earnings were $2.05 per share compared with $1.35 in the prior-year quarter.

Parent & Other: The segment incurred adjusted loss of 40 cents per share compared with 32 cents of loss in the prior-year quarter.

Entergy Wholesale Commodities (EWC): The segment reported adjusted earnings of 14 cents per share compared with $2.08 in the year-ago quarter.

Highlights of the Release

Interest expenses were $154.6 million in second-quarter 2018, up 6.4% from $145.2 million in the prior-year quarter.

In the reported quarter, total retail customers served by the company increased 0.5% to 2.9 million.

Financial Highlights

As of Jun 30, 2018, Entergy had cash and cash equivalents of $812.8 million compared with $781 million as of Dec 31, 2017.

At the end of second quarter, the company generated cash from operating activities of $522.5 million, up from $290.3 million in the prior-year quarter.

Guidance

For 2018, Entergy reaffirmed its operational earnings guidance in the band of $6.25-$6.85 per share.

The Utility, Parent & Other adjusted earnings are also expected to be in the range of $4.50-$4.90 per share.

Zacks Rank

Entergy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

NextEra Energy, Inc. NEE reported second-quarter 2018 adjusted earnings of $2.11 per share, which outpaced the Zacks Consensus Estimate of $2.07 by 1.93%. Earnings were up 13.4% on a year-over-year basis.

CMS Energy Corporation CMS reported second-quarter 2018 adjusted earnings per share of 48 cents.

DTE Energy DTE reported second-quarter 2018 operating earnings per share of $1.36, which surpassed the Zacks Consensus Estimate of $1.11 by 22.5%.

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