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Entergy (ETR) to Report Q1 Earnings: What's in the Cards?

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Zacks Equity Research
·3 min read
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Entergy Corporation ETR is set to release first-quarter 2020 results on May 11, before the opening bell. In the last reported quarter, the company delivered a positive earnings surprise of 3.03%.

Entergy missed the Zacks Consensus Estimate in two out of four trailing quarters and beat the consensus mark in the other two, the average negative surprise being 0.71%.

Let’s see how things have shaped up prior to this announcement.

Factors to Consider

In the January-March 2020 quarter, Entergy witnessed mixed weather patterns at its service territories. While the majority of its service areas experienced warmer-than-normal winter, a few areas witnessed below-normal temperature. These factors are expected to have been reflected in revenues.

Entergy Corporation Price and EPS Surprise

Entergy Corporation Price and EPS Surprise
Entergy Corporation Price and EPS Surprise

Entergy Corporation price-eps-surprise | Entergy Corporation Quote

Moreover, new rates for Entergy Arkansas that became effective since January 2020 are likely to have boosted the company’s first-quarter top line.

The Zacks Consensus Estimate for Entergy’s first-quarter revenues, pegged at $3.68 billion, indicates an improvement of 2.7% from the year-ago quarter.

While revenue growth is expected to have contributed to the company’s quarterly earnings, factors like gains from the decommissioning trust fund investments and lower asset write-offs must also have bolstered the company’s bottom linein the first quarter.

The Zacks Consensus Estimate for Entergy’s first-quarter earnings, pegged at 94 cents per share, indicates an improvement of 14.6% from the year-ago quarter.

Earnings Whispers

Our proven model doesn’t conclusively predict an earnings beat for Entergy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Entergy carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stock to Consider

Here is a company from the Utilities sector that has the right combination of elements to post an earnings beat when it reports results.

Spire Inc. SR has an Earnings ESP of +0.17% and a Zacks Rank #3. The company is set to announce second-quarter fiscal 2020 results on May 8.

Recent Utility Releases

American Electric Power Co., Inc. AEP reported first-quarter 2020 adjusted earnings per share of $1.02, which missed the Zacks Consensus Estimate of $1.09 by 6.4%.

Public Service Enterprise Group Inc. PEG reported first-quarter 2020 adjusted operating earnings of $1.03 per share, which came in line with the Zacks Consensus Estimate.

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Entergy Corporation (ETR) : Free Stock Analysis Report
American Electric Power Company Inc (AEP) : Free Stock Analysis Report
Public Service Enterprise Group Incorporated (PEG) : Free Stock Analysis Report
Spire Inc (SR) : Free Stock Analysis Report
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