Entergy Corporation’s Shares Rise Following Strong Q3 Earnings
Entergy Corporation (ETR), with a market capitalization of $35.4 billion, stands as a prominent energy supplier in the southern United States, focusing on electric power generation and distribution. Headquartered in New Orleans, Louisiana, the company boasts a diverse range of energy sources, including nuclear, natural gas, and renewables, dedicated to providing lasting and reliable power to millions of customers.
ETR Outshines Market Performance
Over the past year, ETR shares have significantly outperformed the broader market. The stock has surged 68.2%, while the S&P 500 Index ($SPX) increased by 22.3%. Additionally, ETR has risen 8.8% in 2025, compared to SPX’s 4% gain so far this year.
Superiority Over Utilities Sector
In detail, ETR has also surpassed the Utilities Select Sector SPDR Fund’s (XLU) performance, which returned 31.2% over the same period, along with a 4.5% year-to-date increase.
Strong Q3 Results Drive Stock Surge
On October 31, Entergy’s stock price jumped over 15% following the release of robust third-quarter earnings, which exceeded expectations due to lower costs and increased service rates that countered adverse weather conditions. The adjusted earnings per share (EPS) was $2.99, surpassing Wall Street estimates, although total revenue came in at $3.39 billion, falling short of expectations.
Positive Earnings Forecasts Ahead
Analysts anticipate ETR’s EPS will rise 7.4% year-over-year to $3.63 ahead of its FY2024 earnings release scheduled for tomorrow. The company’s record of earnings surprises is varied, as it has exceeded consensus estimates in two of the last four quarters while falling short on two other occasions.
Analyst Ratings Reflect Confidence
Among the 18 analysts covering ETR stock, the consensus rating is a “Moderate Buy.” This rating includes 11 “Strong Buy” ratings, one “Moderate Buy,” and six “Holds.” This illustrates a slightly improved outlook compared to a month earlier, which saw 10 “Strong Buy” ratings.
Updated Price Target from Scotiabank
On January 7, Scotiabank adjusted Entergy’s price target to $82 from $165, aligning with the company’s recent 2-for-1 stock split on December 13, while keeping a “Sector-Perform” rating. ETR shares currently trade above the average price target of $82.15, with the highest target set at $90, suggesting a potential gain of 9.1%.
On the date of publication, Kritika Sarmah did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data herein are for informational purposes only. Please refer to the Barchart Disclosure Policy for more details.
More news from Barchart
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
