Entergy Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Entergy (NYSE:ETR) will unveil its latest earnings on Tuesday, October 30, 2012. Entergy is an energy company involved in electric power production and retail electric distribution operations.

Entergy Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.97 per share, a decline of 44.2% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $2.30. Between one and three months ago, the average estimate moved down. It also has dropped from $2.21 during the last month. Analysts are projecting profit to rise by 28.6% compared to last year’s $5.44.

Past Earnings Performance: Last quarter, the company topped expectations by 41 cents, coming in at profit of $2.11 per share versus a mean estimate of net income of $1.70 per share. This followed two straight quarters of missing estimates.

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A Look Back: In the second quarter, profit rose 15.6% to $370.6 million ($2.06 a share) from $320.6 million ($1.76 a share) the year earlier, exceeding analyst expectations. Revenue fell 10.2% to $2.52 billion from $2.8 billion.

Stock Price Performance: Between July 31, 2012 and October 24, 2012, the stock price fell $2.73 (-3.8%), from $72.67 to $69.94. The stock price saw one of its best stretches over the last year between July 6, 2012 and July 18, 2012, when shares rose for nine straight days, increasing 5.4% (+$3.64) over that span. It saw one of its worst periods between August 10, 2012 and August 23, 2012 when shares fell for 10 straight days, dropping 4.7% (-$3.40) over that span.

Analyst Ratings: There are mostly holds on the stock with nine of 13 analysts surveyed giving that rating.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 1.7% in the fourth quarter of the last fiscal year and 6.2% in first quarter before falling again in the second quarter.

Wall St. Revenue Expectations: Analysts predict a rise of 0.6% in revenue from the year-earlier quarter to $3.42 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.05 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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

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