Entergy Corp Earnings: The Streak is Broken

S&P 500 (NYSE:SPY) component Entergy Corporation (NYSE:ETR) reported its results for the fourth 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 Fourth Quarter

Results: Net income for the electric utilities company fell to $160 million (87 cents per share) vs. $233.3 million ($1.28 per share) a year earlier. This is a decline of 31.4% from the year earlier quarter.

Revenue: Fell 1.7% to $2.49 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: ETR reported adjusted net income of 94 cents per share. By that measure, the company fell short of mean estimate of 96 cents per share. It fell short of the average revenue estimate of $2.56 billion.

Quoting Management: “Our objective of establishing sound public policy that creates greater energy independence, environmental cleanliness and economic growth was advanced by recent events,” said J. Wayne Leonard, Entergy’s chairman and chief executive officer. “Approximately four months after the trial of the Entergy lawsuit against the state of Vermont, the court struck down statutory provisions passed by the Vermont Legislature in an effort to shut down the Vermont Yankee nuclear plant on radiological safety grounds, ruling that the effort was preempted by federal law. We’re pleased with the decision issued after a thorough review of the facts and the law, as outlined in the meticulous 102-page decision. The ruling is good news for VY’s approximately 600 employees, the nuclear industry, the environment, and New England residents and industries that depend on VY’s clean, affordable, reliable power.”

Key Stats:

Last quarter’s profit decrease breaks a streak of three consecutive quarters of year-over-year profit increases. Net income rose 27.1% in the third quarter from the year earlier, while the figure rose 0.1% in the second quarter and 15.9% in the first quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the third quarter, it topped the mark by 17 cents, and in the second quarter, it was ahead by one cent.

Revenue fell last quarter after seeing a rise the quarter before. Revenue rose 1.9% to $3.4 billion in the third quarter from the year earlier.

Looking Forward: Expectations for the company’s next quarter performance are more favorable than they were a month ago. The average estimate for the first quarter of the next fiscal year is now at $1.20 per share, up from $1.20. For the fiscal year, the average estimate has moved up from $7.26 a share to $7.43 over the last seven days.

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).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com