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Why Is Entergy (ETR) Down 0.9% Since Last Earnings Report?

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It has been about a month since the last earnings report for Entergy (ETR). Shares have lost about 0.9% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Entergy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Entergy Q3 Earnings Miss Estimates, Revenues Rise Y/Y

Entergy Corporation reported third-quarter 2021 adjusted earnings of $2.45 per share, which missed the Zacks Consensus Estimate of $2.50 by 2%.

However, the reported figure inched up 0.4% from $2.44 in the year-ago quarter.

The company reported GAAP earnings of $2.63 per share compared with $2.59 a year ago.

Total Revenues

Entergy’s third-quarter revenues of $3,353.5 million exceeded the Zacks Consensus Estimate of $2,945.6 million by 13.8%. Further, revenues increased 15.5% from $2,903.6 million in the year-ago quarter due to higher Electric and Natural gas revenues.

Segment Results

Utility: The segment’s adjusted quarterly earnings came in at $2.77 per share. Its GAAP earnings were $2.82 per share compared with $2.74 in the prior-year quarter.

Parent & Other: The segment incurred a loss of 32 cents per share compared with a loss of 30 cents in the prior-year quarter.

Highlights of the Release

Operating expenses in the third quarter were $2.53 billion, up 18.9% from $2.13 billion in the year-ago quarter.

Operating income during the quarter totaled $827.9 million compared with $778 million in the year-ago quarter.

Interest expenses were $216.6 million, up 4.2% from $207.8 million in the year-ago quarter.

As of Sep 30, 2021, total retail customers served by the company increased 0.8% to 2.98 million.

Financial Highlights

As of Sep 30, 2021, the company had cash and cash equivalents of $1,000 million compared with $1,759.1 million as of Dec 31, 2020.

Long-term debt was $23.85 billion at the end of third-quarter 2021 compared with $21.20 billion as of Dec 31, 2020.

At the end of third-quarter 2021, the company generated cash from operating activities worth $1,264 million compared with cash generated from operating activities of $921.9 million in the prior-year quarter.

Guidance for 2021

For 2021, Entergy currently expects to generate adjusted earnings in the range of $5.90-$6.10, narrower than its earlier guidance range of $5.80-$6.10 per share. The Zacks Consensus Estimate for the company’s earnings is currently pegged at $5.95 per share, which lies below the midpoint of the newly guided range.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

VGM Scores

At this time, Entergy has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.


Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Entergy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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