Entergy Earnings: Quarter Lacks Gusto

S&P 500 (NYSE:SPY) component Entergy Corporation (NYSE:ETR) reported its results for the third quarter. Entergy is an energy company involved in electric power production and retail electric distribution operations.

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Entergy Corporation Earnings Cheat Sheet

Results: Net income for the utility-electric power fell to $342.7 million ($1.89 per share) vs. $633.1 million ($3.53 per share) a year earlier. This is a decline of 45.9% from the year-earlier quarter.

Revenue: Fell 12.7% to $2.96 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Entergy Corporation fell short of the mean analyst estimate of $1.96 per share. It beat the average revenue estimate of $2.59 billion.

Quoting Management: “While our near-term financial results and outlook continue to reflect the current low commodity price environment, we remained focused on managing all aspects of our business that we can control day-to-day in a safe and efficient manner,” said J. Wayne Leonard, Entergy’s chairman and chief executive officer. “We’ve made substantial progress on our initiative to join the Midwest Independent Transmission System Operator, a regional transmission organization. Most recently, the Arkansas Public Service Commission and the Public Utility Commission of Texas conditionally approved proposals put forth by their respective companies. These milestones move our customers significantly closer to achieving up to $1.4 billion in projected savings over the next decade.”

Key Stats:

For four consecutive quarters, revenue has fallen. Revenue declined 10.2% to $2.52 billion in the second quarter. The figure fell 6.2% in the first quarter from the year earlier and dropped 1.7% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of $2.11 versus a mean estimate of net income of $1.70 per share.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 71 cents a share to 81 cents over the last thirty days. For the fiscal year, the average estimate has moved down from $5.49 a share to $5.44 over the last sixty days.

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

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