Entergy Earnings: Here’s Why Investors are Not Excited

Entergy Corporation (NYSE:ETR) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares closed down 0.75%.

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Entergy Corporation Earnings Cheat Sheet

Results: Net income increased 91.84% to $307 million ($1.72 per diluted share) in the quarter versus a net gain of $160.03 million in the year-earlier quarter.

Revenue: Decreased 2.13% to $2.44 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Entergy Corporation reported adjusted net income of $1.72 per share. By that measure, the company beat the mean analyst estimate of $1.4. It missed the average revenue estimate of $3.13 billion.

Quoting Management: “In 2012, Entergy’s management team made significant progress on several key fronts,” said Leo Denault, Entergy’s chairman and chief executive officer. “Looking ahead to 2013, we will remain focused on safety and operational excellence in all aspects of our business as well as successful execution of key initiatives such as our effort to join the Midwest Independent Transmission System Operator, a regional transmission organization, and our proposal to spin off and merge the transmission business with ITC Holdings Corp., working every day to create sustainable value for all of our stakeholders.”

Key Stats (on next page)…

Revenue decreased 17.8% from $2.96 billion in the previous quarter. Net income decreased 10.41% from $342.67 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.78 to a profit $0.77. For the current year, the average estimate has moved up from a profit of $5.51 to a profit of $5.8 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)