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Entergy (ETR) to Report Q3 Earnings: What's in the Cards?

Entergy Corporation ETR is set to release third-quarter 2021 results on Nov 3, before the opening bell. In the last reported quarter, the company delivered a negative earnings surprise of 4.96%.  

Entergy beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 5.95%.

Factors to Consider

In the July-September 2021 quarter, territories served by Entergy witnessed a more or less moderate weather pattern. While some parts experienced a warmer-than-normal temperature trend, accompanied with solid precipitation, other parts remained experienced more or less normal temperature. So, overall electricity usage by the company’s customers is expected to have been average, which must have favorably contributed to its third-quarter top line.

Entergy Corporation Price and EPS Surprise

Entergy Corporation price-eps-surprise | Entergy Corporation Quote

While industrial and commercial sales are expected to have improved driven by economic recovery in the recent months, residential sales have been displaying some weakness with workers going back to offices.  So the impact on overall revenues is expected to have been moderate.

The Zacks Consensus Estimate for Entergy’s third-quarter revenues, pegged at $2.95 billion, indicates an improvement of 1.5% from the year-ago quarter’s reported figure.

A few hurricanes accompanied with strong wind gusts affected parts of Entergy’s service territories in the third quarter, which might have caused widespread damage to its poles and electricity infrastructure. This may have pushed up the operational expenses of this utility provider, thereby impacting its earnings performance.

Nevertheless, the company’s strong cost management initiatives along with optimistic sales performance must have contributed to its bottom line in the soon-to-be-reported quarter.

Consequently, the Zacks Consensus Estimate for Entergy’s third-quarter earnings is pegged at $2.50 per share, indicating an increase of 2.5% from the year-ago quarter’s reported figure.

Earnings Whispers

Our proven model doesn’t conclusively predict an earnings beat for Entergy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: The company’s Earnings ESP is -0.53%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Entergy carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are three Utilities players you may want to consider, as these have the right combination of elements to post an earnings beat this season:

AES Corporation AES has an Earnings ESP of +3.53% and a Zacks Rank #3.

Pinnacle West Capital Corporation PNW has an Earnings ESP of +0.30% and a Zacks Rank #3.

Edison International EIX has an Earnings ESP of +1.49% and a Zacks Rank #3.


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Entergy Corporation (ETR): Free Stock Analysis Report
 
Edison International (EIX): Free Stock Analysis Report
 
Pinnacle West Capital Corporation (PNW): Free Stock Analysis Report
 
The AES Corporation (AES): Free Stock Analysis Report
 
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