Entergy (ETR) to Report Q3 Earnings: What's in the Offing?
Entergy Corporation ETR is set to release third-quarter 2023 results on Nov 1, before the opening bell.
In the last reported quarter, the company delivered an earnings surprise of 8.88%. Entergy boasts a four-quarter average earnings surprise of 3.41%.
Factors to Consider
In the third quarter, territories served by Entergy mostly witnessed a warmer-than-normal weather pattern. This is likely to have resulted in higher electricity consumption for cooling purposes in the summer, thereby boosting ETR’s revenue growth in the to-be-reported quarter.
Entergy Corporation Price and EPS Surprise
Entergy Corporation price-eps-surprise | Entergy Corporation Quote
However, a few tornados affected the company’s service areas in July 2023. This, in turn, is likely to have caused outages for some of ETR’s customers, thereby impacting its overall top-line performance. Also, lower sales to Cogent customers (from the 2022 level) might have had an adverse impact on the company’s revenues.
The Zacks Consensus Estimate for revenues is pegged at $4.05 billion, indicating a year-over-year decline of 3.9%.
The tornados that hit Entergy’s service areas in the third quarter led to some minor structural damages. This might have caused the company to incur higher operation and maintenance cost for restoring and repairing the damages, in the event of its infrastructure being affected by this adverse weather condition. This, in turn, might have adversely impacted Entergy’s earnings performance.
Nevertheless, lower pension expenses, as well as favorable operation and maintenance expense owing to lower spending for nuclear and nonnuclear generation, might have aided the company’s overall quarterly bottom-line performance.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $2.99 per share, indicating a 5.3% improvement from the year-ago quarter’s recorded number.
Earnings Whispers
Our proven model predicts 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, which is the case here.
Earnings ESP: The company’s Earnings ESP is +0.36 %. 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 #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are three other utility players you may want to consider as these too have the right combination of elements to post an earnings beat this reporting cycle.
Consolidated Edison ED has an Earnings ESP of +3.77% and a Zacks Rank #2 at present. The company delivered a four-quarter average earnings surprise of 8.22%.
Consolidated Edison boasts a long-term earnings growth rate of 2%. The Zacks Consensus Estimate for ED’s third-quarter earnings and sales is pegged at $1.59 per share and $3.83 billion, respectively.
NiSource NI has an Earnings ESP of +18.52% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter earnings is pegged at 14 cents per share, implying a 40% increase from that reported in the prior-year quarter.
The consensus mark for NI’s sales is pinned at $1.06 billion. The company has a trailing four-quarter average negative earnings surprise of 5.61%.
Ameren AEE has an Earnings ESP of +0.22% and a Zacks Rank #3 at present. The consensus estimate for third-quarter earnings is pinned at $1.80 per share, indicating a 3.5% increase year over year.
Ameren boasts a four-quarter average earnings surprise of 8.86%. The consensus mark for third-quarter sales is pegged at $2.37 billion, indicating growth of 2.8% from that recorded in the prior-year quarter.
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Ameren Corporation (AEE) : Free Stock Analysis Report
NiSource, Inc (NI) : Free Stock Analysis Report
Entergy Corporation (ETR) : Free Stock Analysis Report
Consolidated Edison Inc (ED) : Free Stock Analysis Report
