Entergy (ETR) to Report Q2 Earnings: What's in the Offing?
Entergy Corporation ETR is set to release second-quarter 2023 results on Aug 2, before the opening bell.
In the last reported quarter, the company delivered a negative earnings surprise of 14.93%. Entergy boasts a four-quarter average earnings surprise of 7.53%.
Factors to Consider
In the second quarter, territories served by Entergy mostly witnessed warmer-than-normal weather pattern. This is likely to have resulted in higher electricity consumption for cooling purposes by the company’s customers, thereby boosting its revenue growth in the to-be-reported quarter.
However, hail storms and wildfire affected Entergy’s service areas during some parts of the quarter. This, in turn, is likely to have impacted the company’s overall top-line performance. Also, lower sales to Cogent customers compared with that in 2022 might have had an adverse impact on ETR’s revenues.
Entergy Corporation Price and EPS Surprise
Entergy Corporation price-eps-surprise | Entergy Corporation Quote
The Zacks Consensus Estimate for revenues is pegged at $3.27 billion, indicating a decline of 3.8% from the year-ago period’s level.
The company might have incurred higher operation and maintenance cost for restoring and repairing the damages associated with the extreme weather conditions that affected Entergy’s service areas during the second quarter. This, in turn, might have impacted Entergy’s overall earnings performance.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.69 per share, indicating a 5.1% decrease from the year-ago quarter’s number.
Earnings Whispers
Our proven model does not 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. This is not the case here.
Earnings ESP: The company’s Earnings ESP is -0.18 %. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Entergy currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are three utility players you may want to consider as these have the right combination of elements to post an earnings beat this reporting cycle.
Exelon Corporation EXC has an Earnings ESP of +0.12% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter sales is pegged at $4.40 billion, implying growth of 3.8% year over year.
EXC has a four-quarter average earnings surprise of 1.47%. The Zacks Consensus Estimate for second-quarter earnings is pegged at 41 cents per share.
Consolidated Edison ED has an Earnings ESP of +1.40% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter earnings is pegged at 57 cents per share.
The consensus estimate for ED’s second-quarter sales is pegged at $3.28 billion, indicating a year-over-year decline of 3.9%. ED has a four-quarter average earnings surprise of 9.51%.
Ameren Corporation AEE has an Earnings ESP of +2.05% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for Ameren’s second-quarter revenues is pegged at $1.75 billion, implying growth of 1.5% from the year-ago quarter’s level.
The consensus mark for AEE’s second-quarter earnings is pegged at 75 cents per share. The company has a four-quarter average earnings surprise of 4.70%.
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Exelon Corporation (EXC) : Free Stock Analysis Report
Ameren Corporation (AEE) : Free Stock Analysis Report
Entergy Corporation (ETR) : Free Stock Analysis Report
Consolidated Edison Inc (ED) : Free Stock Analysis Report
