Before the bell,
) reported first quarter 2013 results. In the reported quarter,
the company posted operational earnings of 94 cents per share
that came at par with the Zacks Consensus Estimate and above the
company's preliminary expectation. The reported figure climbed
significantly from the year-ago quarter's profit of 44 cents.
The higher numbers mainly came from an improved performance at
Utility and Entergy Wholesale Commodities.
Revenue in the reported quarter boosted 9.4% year over year to
$2,608.9 million. The top line, however, fell short of the Zacks
Consensus Estimate of $2,625.0 million.
Of this Electricity revenue was up 9.2% to $1,949.3 million,
Natural Gas increased almost 16% to $53.3 million, and
Competitive Business revenue was up 9.7% to $606.3 million.
Utility's quarterly earnings were $123.5 million on an
as-reported basis and $129.8 million on an operational basis,
compared with $62.9 million on as-reported and $68.7 million on
operational bases in the first quarter 2012. The year-over-year
increase was largely due to lower income tax expense.
The reduction in income tax expense was associated with Entergy's
write-off of an Entergy Gulf States Louisiana regulatory asset in
first quarter 2012.
Entergy Wholesale Commodities
Entergy Wholesale Commodities' as-reported and operational
earnings were $82.1 million for first quarter 2013, compared with
a loss of $175.9 million for first quarter 2012. The swing to
profit was attributable to higher net revenue from the nuclear
portfolio on higher energy and capacity prices.
Parent & Other
Parent & Other segment widened its loss in the reported
quarter as numerous individually insignificant items affected
results. The unit reported a loss of $44.2 million on both
as-reported basis and an operational basis for first quarter
2013. This compares to a loss of $38.6 million on an as-reported
basis and $37.2 million on an operational basis in the first
The company generated $544.0 million net cash from operating
activities compared with $601.0 million in the first quarter
2012. Cash and cash equivalents at the end of the reported period
were $263.0 million versus $685 million at year-end 2012.
Long-term debt increased to $13,471 million from $12,619.0
million at year-end 2012.
Entergy maintained its 2013 earnings guidance in the range of
$4.60 to $5.40 per share on an operational basis. However, the
company revised its as-reported earnings assumption to $4.56 to
$5.36 per share from $4.60 to $5.40 per share earlier, reflecting
expenses related to the proposed spin-off and merger of the
transmission business with
ITC Holdings Corporation
Entergy − the second largest U.S. nuclear power generator after
) − has a Zacks Rank #3 (Hold). However, we would advise
investors to focus on Zacks Rank #1 (Strong Buy)
Brookfield Infrastructure Partners L.P.
BROOKFIELD INFR (BIP): Free Stock Analysis
ENTERGY CORP (ETR): Free Stock Analysis
EXELON CORP (EXC): Free Stock Analysis Report
ITC HOLDINGS CP (ITC): Free Stock Analysis
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