Valued at $34 billion by market cap New Orleans, Louisiana-based Entergy Corporation (ETR) engages in the production and retail distribution of electricity in the United States. The company’s power plants have approximately 24,000 megawatts of electric generating capacity.
The utility giant is expected to release its first-quarter results before the markets open on Wednesday, Apr. 23. Ahead of the event, analysts expect ETR to report a non-GAAP profit of $0.60 per share, representing a significant 11.1% growth from $0.54 per share reported in the year-ago quarter. While the company has missed Street’s earnings estimates once over the past four quarters, it has surpassed the projections on three other occasions.
For the full fiscal 2025, ETR is expected to deliver a non-GAAP EPS of $3.88, up 6.3% from $3.65 in fiscal 2024. In fiscal 2026, its earnings are expected to further surge 11.3% year-over-year to $4.32 per share.
ETR stock has soared 51.5% over the past 52 weeks, significantly outperforming the Utilities Select Sector SPDR Fund’s (XLU) 15.2% gains and the S&P 500 Index’s ($SPX) 4.7% uptick during the same time frame.
Entergy’s stock prices surged nearly 6% after the release of its mixed Q4 results on Feb. 18. The company’s natural gas and other revenues observed a notable drop, while its electric revenues experienced a modest increase. This led to a marginal 64 bps growth in overall topline compared to the year-ago quarter to $2.7 billion, missing the Street’s expectations by a large margin. However, its earnings continued to remain near the high end of management’s guidance and its adjusted EPS of $0.66 surpassed analysts’ projections by 4.8%. Meanwhile, for fiscal 2025, the company gave an adjusted EPS guidance range of $3.75 to $3.95, which boosted investor confidence.
Furthermore, analysts remain confident in Entergy’s prospects. The consensus opinion on ETR stock is moderately optimistic, with a “Moderate Buy” rating overall. Out of the 17 analysts covering the stock, 11 recommend “Strong Buy” while six advocate a “Hold” rating. Its mean price target of $89.66 represents an 11.4% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
