Entergy's (ETR) Q3 Earnings Beat Estimates, Revenues Fall Y/Y
Entergy Corporation ETR reported third-quarter 2023 adjusted earnings of $3.27 per share, which surpassed the Zacks Consensus Estimate of $2.97 by 10.1%. The bottom line also improved 15.1% from $2.84 reported in the year-ago quarter.
The company reported GAAP earnings per share of $3.14, up from the year-ago quarter’s level of $2.74.
The year-over-year upside in earnings was driven by the effects of weather on retail volume, the net effect of regulatory actions across the operating companies, lower other operating and maintenance expenses, and higher other income from affiliate preferred investments.
Q3 Revenues
Entergy reported revenues of $3,595.5 million, which missed the Zacks Consensus Estimate of $4,222.8 million by 14.9%. The figure also declined 14.8% from $4,218.6 million reported in the year-ago quarter due to lower revenues from all of its segments.
Entergy Corporation Price, Consensus and EPS Surprise
Entergy Corporation price-consensus-eps-surprise-chart | Entergy Corporation Quote
Segmental Results
Utility: The segment’s quarterly earnings were $3.54 per share compared with $3.29 in the prior-year quarter.
Parent & Other: The segment incurred an adjusted loss of 55 cents per share, wider than the year-ago quarter’s reported adjusted loss of 45 cents.
Highlights of the Release
Operating expenses totaled $2,452.1 million, down 24.9% from $3,263.9 billion recorded in the prior-year quarter.
Operating income amounted to $1,143.3 million, up 19.8% from $954.7 million registered in the year-ago period.
Total interest expenses were $255.4 million, up 12.3% from $227.5 million reported in the comparable period of 2022.
As of Sep 30, 2023, total retail customers served by the company increased 0.8% to 3.02 million.
Financial Highlights
As of Sep 30, 2023, Entergy had cash and cash equivalents of $1,519.8 million compared with $224.2 million as of Dec 31, 2022.
Long-term debt totaled $24.66 billion as of Sep 30, 2023, compared with $23.62 billion as of Dec 31, 2022.
As of Sep 30, 2023, ETR generated cash from operating activities of $3,231 million compared with $1,809.4 million in the comparable period of 2022.
Guidance for 2023
Entergy updated its financial guidance for 2023. The company now expects adjusted earnings in the range of $6.65-$6.85 per share, narrower than the prior guidance of $6.55-$6.85. The Zacks Consensus Estimate for earnings is currently pegged at $6.72 per share, lower than the midpoint of the company’s guided range.
Zacks Rank
Entergy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility Release
NextEra Energy, Inc. NEE released third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%. The bottom line was also up 10.6% from the prior-year quarter’s level. The year-over-year improvement was due to the solid performances of Florida Power & Light Company and NextEra Energy Resources.
For the third quarter, NextEra’s operating revenues totaled $7,172 million, which lagged the Zacks Consensus Estimate of $7,453 million by 3.8%. The top line, however, improved 6.7% year over year.
PG&E Corporation’s PCG adjusted earnings per share of 24 cents in the third quarter of 2023 lagged the Zacks Consensus Estimate of 28 cents by 14.3%. The bottom line decreased 17.2% from the year-ago quarter’s reported figure.
PCG reported total revenues of $5,888 million compared with $5,394 million in the year-ago period. The figure missed the Zacks Consensus Estimate of $5,946.1 million by 0.9%.
Public Service Enterprise Group Incorporated PEG, or PSEG, reported third-quarter 2023 adjusted operating earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 75 cents by 13.3%. However, the figure deteriorated 1.2% year over year.
Operating revenues totaled $2,456 million in the third quarter, which beat the Zacks Consensus Estimate of $2,423.5 million by 1.3%. The top line also increased 8.1% from the year-ago quarter’s figure of $2,076 million.
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