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Entergy Corp (ETR) Q4 Earnings Beat, Revenues Decline Y/Y

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Entergy Corporation (ETR - Free Report) reported fourth-quarter 2018 adjusted earnings of 60 cents per share, which surpassed the Zacks Consensus Estimate of 48 cents by 25%. However, the reported figure decreased 21.1% from 76 cents registered in the year-ago quarter.

Excluding the effects of special items, the company incurred GAAP loss of 36 cents per share compared with a loss of $2.26 per share a year ago.

For 2018, the company reported adjusted earnings of $7.31 per share, which outpaced the Zacks Consensus Estimate of $7.15 by 2.2%. The bottom line also increased 1.5% from $7.20 in the prior year.

Entergy Corporation Price, Consensus and EPS Surprise

Entergy Corporation Price, Consensus and EPS Surprise | Entergy Corporation Quote

Total Revenues

In the quarter under review, total revenues came in at $2,512.5 million, which exceeded the Zacks Consensus Estimate of $1,961 million by 28.1%. However, the top line fell 4.2% from the year-ago quarter’s $2,623.8 million.

For 2018, the company’s total revenues amounted to $11.01 billion, which surpassed the Zacks Consensus Estimate of $10.74 billion by 2.4%.

However, the reported figure slipped 0.6% from the year-ago quarter’s $11.07 billion.

Segment Results

Utility: The segment’s quarterly adjusted earnings came in at $1.91 per share compared with 74 cents in the prior-year quarter.

Parent & Other: The segment incurred adjusted loss of 44 cents per share compared with a loss of 33 cents in the prior-year quarter.

Entergy Wholesale Commodities (EWC): The segment incurred adjusted loss of 87 cents per share against earnings of 35 cents registered in the year-ago quarter.

Highlights of the Release

Operating expenses in the quarter summed $2.74 billion, up 14.9% from $2.39 billion in the year-ago quarter.

Interest expenses were $197.8 million, up 7.3% from $184.4 million in the year-ago quarter.

In the reported quarter, total retail customers served by the company increased 0.6% to nearly 2.9 million.

Financial Highlights

As of Dec 31, 2018, the company had cash and cash equivalents of $481million compared with $781 million as of Dec 31, 2017.

At the end of 2018, the company generated cash from operating activities of $2.39 billion, down from $2.62 billion in the prior year.

Guidance

For 2019, Entergy expects its operational earnings to remain in the band of $5.10-$5.50 per share. The Zacks Consensus Estimate for the company’s earnings is currently pegged at $5.35, higher than the midpoint of the company’s guided range.

Zacks Rank

Entergy carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

Ameren Corporation’s (AEE - Free Report) fourth-quarter 2018 earnings of 28 cents per share from continuing operations missed the Zacks Consensus Estimate of 32 cents by 12.5%.

American Electric Power Co. (AEP - Free Report) reported fourth-quarter 2018 operating earnings of 72 cents per share, in line with the Zacks Consensus Estimate.

NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2018 adjusted earnings of $1.49 per share, which fell short of the Zacks Consensus Estimate of $1.51 by 1.3%.

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