Entergy (ETR) to Report Q1 Earnings: What's in the Cards?
Entergy Corporation ETR is scheduled to release its first-quarter 2024 earnings on Apr 24 before market open. The company delivered a negative earnings surprise of 5.45% in the last quarter.
The company holds a four-quarter average negative earnings surprise of 0.35%. Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors at Play
In the first quarter, Entergy’s service territories witnessed mixed weather patterns. The majority of its service areas recorded below-normal temperatures during January, while warmer-than-normal temperatures prevailed during February and March. Such a weather pattern is expected to have a moderate impact on Entergy’s top-line performance in the to-be-reported quarter. Solid customer growth might have boosted the company’s first-quarter revenues.
Entergy Corporation Price and EPS Surprise
Entergy Corporation price-eps-surprise | Entergy Corporation Quote
An adverse weather pattern, including a few winter storms, along with wildfires, affected Entergy’s service territories during the first quarter. This might have caused outages for some of the company’s customers, thereby partially impacting ETR’s overall revenues.
The Zacks Consensus Estimate for first-quarter sales stands at $3.18 billion, which suggests an increase of 6.5% from the year-ago reported number.
The adverse weather conditions mentioned above might have caused some structural damage to the company’s infrastructure, thereby increasing its expenses for the repair of infrastructure. This, along with higher interest expenses, is likely to have hurt ETR’s first-quarter earnings.
Nevertheless, strong sales expectations, lower compensation and benefits costs, lower non-nuclear and nuclear generation expenses and the elimination of MISO generator service costs must have benefited the company’s overall quarterly bottom-line performance.
The Zacks Consensus Estimate for Entergy’s first-quarter earnings is pegged at $1.40 per share, which implies an increase of 22.8% from the first-quarter 2023 reported figure.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for ETR this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.
Earnings ESP: ETR has an Earnings ESP of +5.71%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, ETR carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Below we have mentioned the following players from the same industry that also have the right combination of elements to beat on earnings in the upcoming releases.
NextEra Energy Inc. NEE is expected to report its first-quarter 2024 results on Apr 23 before market opens. It has an Earnings ESP of +2.60% and carries a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for NEE’s Q1 earnings is pegged at 77 cents per share, while the same for sales is pegged at $6.47 billion. The company delivered a four-quarter average earnings surprise of 8.36%.
PG&E PCG is slated to report its first-quarter 2024 results on Apr 25 before market open. It has an Earnings ESP of +4.72% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for PCG’s Q1 earnings stands at 35 cents per share, which suggests a 20.7% improvement from the first-quarter 2023 reported figure. The Zacks Consensus Estimate for first-quarter sales is pegged at $6.63 billion, which implies a 6.8% increase from that reported in the prior-year quarter.
PPL Corporation PPL is set to report first-quarter earnings on May 1. It has an Earnings ESP of +0.98% and carries a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for PPL’s earnings is pegged at 51 cents per share, which calls for a 2.6% improvement from the first-quarter 2023 reported number. The Zacks Consensus Estimate for first-quarter sales is pegged at $2.48 billion, which indicates a 2.6% increase from that reported in the prior-year quarter.
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