Entergy Corp Earnings Cheat Sheet: Profitable Quarter Accelerates Growth

S&P 500 (NYSE:SPY) component Entergy Corporation (NYSE:ETR) reported net income above Wall Street’s expectations for the third quarter. Entergy is an energy company involved in electric power production and retail electric distribution operations.

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Entergy Earnings Cheat Sheet for the Third Quarter

Results: Net income for the electric utilities company rose to $628 million ($3.53 per share) vs. $492 million ($2.62 per share) in the same quarter a year earlier. This marks a rise of 27.6% from the year earlier quarter.

Revenue: Rose 1.9% to $3.4 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: ETR beat the mean analyst estimate of $3.36 per share. It fell short of the average revenue estimate of $3.47 billion.

Quoting Management: “Legal and regulatory proceedings dominated the quarter.In September, the trial on our federal lawsuit to prevent the state of Vermont from forcing Vermont Yankee to close in March of next year, despite the fact that the NRC has extended the license, was completed.A ruling from the district court could be issued at any time.In New York, the hearing before administrative law judges of the New York State Department of Environmental Conservation is under way and expected to continue into 2012,” said J. Wayne Leonard, Entergy’s chairman and chief executive officer.

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 0.1% and in the first quarter, the figure rose 15.9%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the second quarter, by one cent in the first quarter, and by one cent in the fourth quarter of the last fiscal year.

A year-over-year revenue increase last quarter snaps a streak of two consecutive quarters of revenue declines. Revenue fell 2.1% in the second quarter and fell 7.9% in the first quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $1.03 a share to $1 over the last ninety days. The average estimate for the fiscal year is $7.30 per share, a rise from $6.60 ninety days ago.

Competitors to Watch: Exelon Corporation (NYSE:EXC), The Southern Company (NYSE:SO), El Paso Electric Company (NYSE:EE), NextEra Energy, Inc. (NYSE:NEE), American Electric Power Co., Inc. (NYSE:AEP), Cleco Corporation (NYSE:CNL), PPL Corporation (NYSE:PPL), OGE Energy Corp. (NYSE:OGE), Progress Energy, Inc. (NYSE:PGN), and TECO Energy, Inc. (NYSE:TE).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)