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Entergy (ETR) Set to Report Q4 Earnings: What's in Store?

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Entergy Corporation (ETR - Free Report) is set to release fourth-quarter 2021 results on Feb 23, before the opening bell. In the last reported quarter, the company delivered a negative earnings surprise of 2.00%.  

Entergy beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 5.25%.

Factors to Consider

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

Entergy Corporation Price and EPS Surprise

Entergy Corporation Price and EPS Surprise

Entergy Corporation price-eps-surprise | Entergy Corporation Quote

As the economy is recovering moderately from the initial setback of the pandemic, Ameren’s fourth-quarter revenues is projected to have benefited from higher industrial and commercial sales.  

The Zacks Consensus Estimate for Entergy’s fourth-quarter revenues, pegged at $2.45 billion, indicates an improvement of 3.6% from the year-ago quarter’s reported figure.

A few tornadoes accompanied by strong wind gusts and flash floods affected parts of Entergy’s service territories in the fourth 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 quarterly earnings performance.

Moreover, higher expenses in the company’s power generation function might have had an adverse impact on its bottom-line figure in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for Entergy’s fourth-quarter earnings is pegged at 70 cents per share, indicating a decrease of 1.4% 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 -1.08%. 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 #2. 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:

American Electric Power (AEP - Free Report) has an Earnings ESP of +0.43% and a Zacks Rank #3. The stock boasts a long-term earnings growth rate of 5.60%.

The Zacks Consensus Estimate for American Electric’s fourth-quarter revenues and earnings is pegged at $4.02 billion and 94 cents, respectively. AEP has a four-quarter average earnings surprise of 1.61%.

Public Service Enterprise Group (PEG - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #3. The stock boasts a long-term earnings growth rate of 3.60%.

The Zacks Consensus Estimate for Public Service’s fourth-quarter revenues and earnings is pegged at $2.50 billion and 68 cents, respectively. PEG has a four-quarter average earnings surprise of 4.57%.

Sempra Energy (SRE - Free Report) has an Earnings ESP of +0.58% and a Zacks Rank #3. The stock boasts a long-term earnings growth rate of 5.3%.

The Zacks Consensus Estimate for Sempra Energy’s fourth-quarter revenues and earnings is pegged at $3.31 billion and $2.02, respectively. SRE has a four-quarter average earnings surprise of 7.90%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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