What's in Store for Entergy (ETR) This Earnings Season?
Entergy Corporation ETR is set to release second-quarter 2021 results on Aug 4, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 23.53%.
Entergy beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 10.04%.
Factors to Consider
In the April-June 2021 quarter, territories served by Entergy witnessed mixed weather pattern. While some parts experienced warmer-than-normal temperature trend, accompanied with solid precipitation, temperature in some other parts remained more or less normal. So, overall electricity usage by the company’s customers is expected to have been moderate, which must have favorably contributed to its second-quarter top line.
Entergy Corporation Price and EPS Surprise
Entergy Corporation price-eps-surprise | Entergy Corporation Quote
Moreover, positive effects of regulatory actions associated with the company’s customer-centric investments in Arkansas, Louisiana, Mississippi and Texas, along with strong growth in its renewable portfolio are expected to drive its second-quarter results.
The Zacks Consensus Estimate for Entergy’s second-quarter revenues, pegged at $2.48 billion, indicates an improvement of 2.9% from the year-ago quarter’s reported figure.
Multiple thunderstorms accompanied with strong wind gusts affected Entergy’s service territories in the second quarter, which might have caused widespread damage to its poles and electricity infrastructure. This may have pushed up operational expenses of this utility provider, thereby hurting its earnings performance.
Nevertheless, better-than-expected market performance of Entergy Wholesale Commodities’ (EWC) nuclear decommissioning trusts might have contributed favorably to the company’s bottom line in the soon-to-be-reported quarter.
Consequently, the Zacks Consensus Estimate for Entergy’s second-quarter earnings is pegged at $1.41 per share, indicating an increase of 2.9% from the year-ago quarter’s reported figure.
Earnings Whispers
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 -0.53%. 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.
Stocks to Consider
Here are some players from the Utilities sector with the right combination of elements to post an earnings beat in the to-be-reported quarter.
CenterPoint Energy CNP has an Earnings ESP of +0.68% and holds a Zacks Rank #3.
Duke Energy DUK has an Earnings ESP of +0.15% and carries a Zacks Rank #2.
Consolidated Edison ED has an Earnings ESP of +1.74% and carries a Zacks Rank #3.
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Entergy Corporation (ETR) : Free Stock Analysis Report
Duke Energy Corporation (DUK) : Free Stock Analysis Report
Consolidated Edison Inc (ED) : Free Stock Analysis Report
CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report
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