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Entergy's (ETR) Q2 Earnings Miss Estimates, Revenues Fall Y/Y

Zacks Equity Research

Entergy Corporation ETR reported second-quarter 2019 adjusted earnings of $1.35 per share, which missed the Zacks Consensus Estimate of $1.38 by 2.2%. Moreover, the bottom line declined 4.9% from $1.42 per share in the year-ago quarter.
 
Excluding the effects of special items, the company registered GAAP earnings of $1.22 per share compared with earnings of $1.34 a year ago.
 
Total Revenues
 
In the quarter under review, total revenues came in at $2,666.2 million, which lagged the Zacks Consensus Estimate of $2,980 million by 10.5%. Also, the top line fell 0.1% from the year-ago quarter’s $2,668.8 million.
 
Segment Results
 
Utility: The segment’s quarterly adjusted earnings came in at $1.70 per share compared with $1.82 in the prior-year quarter.
 
Parent & Other: The segment incurred an adjusted loss of 35 cents per share compared with a loss of 40 cents in the prior-year quarter.
 
Entergy Wholesale Commodities (EWC): The segment registered earnings of 13 cents per share on an as-reported basis against a loss of 31 cents in the year-ago quarter.
 
Highlights of the Release
 
Operating expenses in the quarter summed $2,327.4 million, down 9.7% from $2,577.2 million in the year-ago quarter.

Interest expenses were $201.1 million, up 4.6% from $192.3 million in the year-ago quarter.

In the reported quarter, total retail customers served by the company increased 0.3% to nearly 2.91 million.

Financial Highlights

As of Jun 30, 2019, Entergy had cash and cash equivalents of $635.9 million compared with $481 million as of Dec 31, 2018.

Long-term debt was $17.2 billion as of Jun 30, 2019, compared with $15.52 billion as of Dec 31, 2018.

At the end of the first half of 2019, the company generated cash from operating activities of $1,053.1 million, down from $1,079.9 million in the prior-year quarter.

Entergy Corporation Price, Consensus and EPS Surprise

 

Entergy Corporation Price, Consensus and EPS Surprise

Entergy Corporation price-consensus-eps-surprise-chart | Entergy Corporation Quote

Guidance

For 2019, Entergy has narrowed its guidance for operational earnings to $5.15-$5.45 per share compared with the previous expectation of $5.10-$5.50. The Zacks Consensus Estimate for the company’s earnings is currently pegged at $5.28, lower than the midpoint of the company’s guided range.
 
Zacks Rank
 
Entergy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

American Electric Power Co., Inc. AEP, a Zacks Rank #3 (Hold) stock, reported second-quarter 2019 adjusted earnings per share of $1.00, surpassing the Zacks Consensus Estimate of 98 cents by 2%.

NextEra Energy NEE, a Zacks Rank #3 stock, reported second-quarter 2019 adjusted earnings of $2.35 per share, beating the Zacks Consensus Estimate of $2.28 by 3.1%.

CMS Energy Corporation CMS, a Zacks Rank #3 stock, reported second-quarter 2019 adjusted earnings per share of 33 cents, down 32.7% year over year. The bottom line also missed the Zacks Consensus Estimate of 44 cents by 25%.

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