Entergy (ETR) Q2 Earnings Beat Estimates, Revenues Rise Y/Y

Entergy Corporation ETR reported second-quarter 2022 adjusted earnings of $1.78 per share, which surpassed the Zacks Consensus Estimate of $1.42 by 25.4%. The reported figure also increased 32.8% from $1.34 per share in the year-ago quarter.

Entergy reported GAAP earnings of 78 cents per share against the GAAP loss of 3 cents per share for year ago.

Total Revenues

Entergy’s second-quarter revenues of $3,395.2 million exceeded the Zacks Consensus Estimate of $2,878.6 million by 17.9%. Further, revenues increased by 20.3% from $2,822.1 million in the year-ago quarter due to higher Electric and Natural gas revenues.

Entergy Corporation Price, Consensus and EPS Surprise

Entergy Corporation Price, Consensus and EPS Surprise

Entergy Corporation Price, Consensus and EPS Surprise

Entergy Corporation price-consensus-eps-surprise-chart | Entergy Corporation Quote

Segment Results

Utility: The segment’s adjusted quarterly earnings came in at $2.17 per share compared with $1.62 in the prior-year quarter.

Parent & Other: The segment incurred a loss of 39 cents per share compared with a loss of 28 cents in the prior-year quarter.

Highlights of the Release

Operating expenses in the second quarter were $3.31 billion, up 24.9% from $2.65 billion in the year-ago quarter.

The operating income during the quarter totaled $81.1 million, down 51.8% from $168.2 million in the year-ago quarter.

Total interest expenses were $226.9 million, up 6.3% from $213.4 million in the year-ago quarter.

As of Jun 30, 2022, total retail customers served by the company increased by 0.5% to 2.98 million.

Financial Highlights

As of Jun 30, 2022, Entergy had cash and cash equivalents of $579.9 million compared with $442.6 million as of Dec 31, 2021.

Long-term debt was $24.54 billion as of Jun 30, 2022 compared with $24.84 billion as of Dec 31, 2021.

In the second quarter of 2022, ETR generated cash from operating activities of $278 million compared with the cash inflow from operating activities of $796.1 million in the second quarter of 2021.

Guidance for 2022

For 2022, Entergy still expects to generate earnings adjusted in the range of $6.15-$6.45. The Zacks Consensus Estimate for the company’s earnings is currently pegged at $6.36 per share, which is higher than $6.30, the midpoint of the guided range.

Zacks Rank

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

Utility Releases

NextEra Energy, Inc. NEE reported second-quarter 2022 adjusted earnings of 81 cents per share, which beat the Zacks Consensus Estimate of 75 cents by 8%. The bottom line was also up 14.1% from the prior-year quarter.

For the second quarter, NextEra’s operating revenues were $5,183 million, which lagged the Zacks Consensus Estimate of $5,681 million by 8.8%. However, NEE’s top line improved 31.9% year over year.

American Electric Power Company, Inc.. AEP reported second-quarter 2022 operating earnings per share (EPS) of $1.20, which beat the Zacks Consensus Estimate of $1.18 by 1.7%. The bottom line also improved 1.7% from $1.18 per share in the year-ago quarter.

American Electric’s second-quarter revenues of $4,593.8 million beat the Zacks Consensus Estimate of $4,191.2 million by 9.6%. AEP expects 2022 operating earnings in the range of $4.87-$5.07 per share.

CMS Energy Corporation CMS reported second-quarter 2022 adjusted EPS of 53 cents, which beat the Zacks Consensus Estimate of 44 cents by 20.5%. However, the reported figure declined by 3.6% on a year-over-year basis.

CMS Energy had cash and cash equivalents of $77 million as of Jun 30, 2022, down from $452 million at the end of 2021. CMS expects its 2022 adjusted earnings guidance in the range of $2.85-$2.89 per share.

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