Entergy (ETR) to Report Q2 Earnings: What’s in the Cards?

Entergy Corporation ETR is set to release second-quarter 2022 results on Aug 3, before the opening bell. In the last reported quarter, the company delivered a negative earnings surprise of 4.35%.

Entergy beat the Zacks Consensus Estimate in the trailing four quarters, the average negative surprise being 0.69%.

Factors to Consider

In the April-June 2022, territories served by Entergy June experienced a mixed weather pattern. While some parts of its territory observed warmer-than-normal temperatures, some other parts observed cooler-than-normal temperatures. This is likely to have a moderate impact on the company’s overall top-line performance in the second quarter.

The Zacks Consensus Estimate for Entergy’s second-quarter revenues, pegged at $2.85 billion, indicates a rise of 1% from the year-ago quarter’s reported figure.

Entergy Corporation Price and EPS Surprise

Entergy Corporation Price and EPS Surprise

Entergy Corporation price-eps-surprise | Entergy Corporation Quote

Some parts of Entergy’s service areas severe weather patterns for a few days within the second quarter, along with damaging winds and hailstorms, which must have caused widespread damage to its poles and electricity infrastructure. This might have pushed up the operational expenses of this utility provider, thereby impacting its quarterly earnings performance. Also increased fuel costs might have had an unfavorable impact on the bottom line.

Nevertheless, it gains from the completion of the sale of its Palisades power plant might have boosted its overall Q2 performance.

The Zacks Consensus Estimate for Entergy’s second-quarter earnings is pegged at $1.42 per share, indicating an increase of 6% from the year-ago quarter’s reported figure.

Earnings Whispers

Our proven model predicts 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.

ESP earnings: The company’s Earnings ESP is +0.35%. 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.

Other Stocks to Consider

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

WEC Energy Group WEC has an Earnings ESP of +0.08% and a Zacks Rank #2. The Zacks Consensus Estimate for WEC Energy’s second-quarter earnings is pegged at 86 cents per share, suggesting a decline of 1.2% from the year-ago quarter.

The Zacks Consensus Estimate for WEC’s second-quarter sales is pegged at $1.74 billion, indicating growth of 3.9% from the prior-year reported figure.

Consolidated Edison ED has an Earnings ESP of +1.15% and a Zacks Rank #3. The Zack Consensus Estimate for its second-quarter earnings is pegged at 8 cents per share, indicating growth of 9.4% from the prior-year reported figure.

Consolidated Edison boasts a long-term earnings growth rate of 2%. The Zacks Consensus Estimate for ED’s second-quarter sales is pegged at $3.14 billion, suggesting growth of 5.5% from the prior-year reported figure.

Atmos Energy ATO has an Earnings ESP of +1.35% and a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter earnings, pegged at 86 cents per share, implies an increase of 10.3% from the prior-year quarter’s reported figure.

ATO boasts a long-term earnings growth rate of 7.4%. Atmos Energy has a four-quarter earnings surprise of 1.14%.

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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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