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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-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.
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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