Valued at a market cap of $35.4 billion, Entergy Corporation (ETR) engages in the production and retail distribution of electricity. The New Orleans, Louisiana-based company also engages in the ownership of interests in non-nuclear power plants that sell electric power to wholesale customers, as well as provides decommissioning services to other nuclear power plant owners. It is expected to announce its fiscal Q4 earnings results before the market opens on Tuesday, Feb. 18.
Ahead of this event, analysts project the regulated electric company to report a profit of $0.65 per share, up 150% from $0.26 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in two of the last four quarters while missing on other two occasions. In Q3, ETR’s EPS of $1.50 outpaced the consensus estimates by a margin of 2.7%.
For fiscal 2024, analysts expect Entergy to report an EPS of $3.59, up 6.2% from a profit of $3.38 per share in fiscal 2023.
Shares of ETR have rallied 69.8% over the past 52 weeks, significantly outperforming both the S&P 500 Index's ($SPX) 25.3% return and the Utilities Select Sector SPDR Fund’s (XLU) 32.6% rise over the same time frame.
On Oct. 31, ETR released its Q3 earnings results. The company’s profit outshined Wall Street’s estimated figure but declined 4.8% from the year-ago quarter. On the other hand, its revenue fell 5.7% year-over-year to $3.4 billion and missed the forecasted figure by 2%. Lower revenues from its electric utility segment and higher interest expenses contributed to its top and bottom-line decline. Yet, shares of Entergy skyrocketed 15.2% that day. ETR raised the lower limit of its full-year EPS guidance and narrowed it to $7.15-$7.35 per share, which came in slightly above the consensus estimates of $7.21 per share. This might have bolstered investor confidence and led to its sharp rise.
Wall Street analysts are moderately optimistic about Entergy’s stock, with a "Moderate Buy" rating overall. Among 18 analysts covering the stock, 10 recommend "Strong Buy," one suggests “Moderate Buy,” and seven indicate “Hold.” This configuration is less bullish than three months ago, with 12 analysts suggesting a “Strong Buy.” As of writing, ETR is trading above its mean price target of $79.79.
