Entergy Corporation Prepares for Q3 Earnings Release

Entergy Corporation (ETR), valued at $28.8 billion, is a key player in the electric power sector, serving over 3 million customers in Arkansas, Louisiana, Mississippi, and Texas. With a generation capacity of about 24,000 megawatts from sources such as gas, nuclear, and renewable energy, the New Orleans-based company is set to announce its fiscal Q3 earnings before the market opens on Thursday, Oct. 31.

Analysts Forecast a Drop in Earnings Per Share

Analysts predict Entergy’s profit for the upcoming quarter will be $2.99 per share, an 8.6% decrease compared to $3.27 per share during the same quarter last year. The company has outperformed Wall Street’s earnings expectations in two of its last four quarters, while it fell short during the other two. Notably, ETR exceeded the consensus estimate by 8.5% in its most recent report.

Future Expectations Look Promising

Looking ahead to fiscal 2024, analysts anticipate ETR will report an earnings per share (EPS) of $7.22, a 6.7% increase from $6.77 in fiscal 2023. For fiscal 2025, EPS is projected to grow by 7.2%, reaching $7.74.

Strong Performance Against Market Indices

ETR’s shares have risen 33.5% year-to-date, outperforming the S&P 500 Index’s 22.7% gain and the Utilities Select Sector SPDR Fund’s 28.9% return in the same time frame.

Investors Respond to Positive Q2 Results

On August 1, Entergy’s shares rose 4.2% after the company reported adjusted Q2 earnings of $1.92 per share, which exceeded expectations. Additionally, revenue reached around $3 billion, a 3.8% year-over-year increase, showcasing strong performance across all segments. This alleviated investor concerns regarding earlier revenue expectations. The company also maintained its financial guidance for 2024, projecting adjusted earnings between $7.05 to $7.35 per share.

Analysts Maintain a Positive Outlook

Currently, analysts hold a “Moderate Buy” consensus rating for Entergy’s stock. Out of 18 analysts, there are 12 “Strong Buy,” one “Moderate Buy,” four “Holds,” and one “Strong Sell.” This outlook reflects a more optimistic mood than three months ago, when only nine analysts rated it a “Strong Buy.” As of now, ETR shares are trading above the average analyst price target of $129.81.

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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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