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Entergy (ETR) Down 9.3% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Entergy (ETR). Shares have lost about 9.3% in that time frame, underperforming 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 its most recent earnings report in order to get a better handle on the important catalysts.

Entergy's Q1 Earnings Miss Estimates, Revenues Rise Y/Y

Entergy reported first-quarter 2023 earnings of $1.14 per share, which missed the Zacks Consensus Estimate of $1.34 by 14.9%. The reported figure also declined 13.6% from $1.32 per share in the year-ago quarter.

The company reported GAAP earnings of $1.47 per share compared with $1.36 in the prior-year period.

Q1 Revenues

Entergy’s reported revenues of $2,981.1 million beat the Zacks Consensus Estimate of $2,804.2 million by 6.4%. The figure also improved 3.6% from $2,877.9 million in the year-ago quarter due to higher Electric revenues.

Segmental Results

Utility: The segment’s quarterly earnings came in at $1.87 per share compared with $1.67 in the prior-year quarter.

Parent & Other: The segment incurred a loss of 41 cents per share, wider than the year-ago quarter’s loss of 35 cents.

Highlights of the Release

Operating expenses were $2.52 billion, up 9% from $2.31 billion in the prior-year quarter.

Operating income totaled $462.1 million, down 18.4% from $566.1 million in the year-ago period.

Total interest expenses were $245.7 million, up 10.9% from $221.5 million in the comparable period of 2022.

As of Mar 31, 2023, total retail customers served by the company increased 0.5% to 3 million.

Financial Highlights

As of the same date, Entergy had cash and cash equivalents of $1,970.5 million compared with $224.2 million as of Dec 31, 2022.

Long-term debt was $24.46 billion as of Mar 31, 2023, compared with $23.62 billion as of Dec 31, 2022.

During the quarter under review, ETR generated cash from operating activities of $959.5 million compared with $538 million in first-quarter 2022.

Guidance for 2023

Entergy reiterated its financial guidance for 2023. The company maintained its adjusted earnings guidance in the range of $6.55-$6.85 per share. The Zacks Consensus Estimate for earnings is currently pegged at $6.70 per share, in line with the midpoint of the company’s guided range.

How Have Estimates Been Moving Since Then?

It turns out, estimates review flatlined during the past month.

VGM Scores

At this time, Entergy has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second 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.


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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