) will release its first quarter 2013 financial results before
the market opens on Apr 25, 2013. In the prior quarter, this
electric utility reported an earnings surprise of 21.99%. Let's
see how things are shaping up at Entergy prior to this
Why a Likely Positive Surprise?
Our proven model indicates that Entergy Corp. is likely to beat
earnings because it has the right combination of two key
Positive Zacks ESP:
Expected Surprise Prediction or ESP, which represents the
difference between the Most Accurate estimate and the Zacks
Consensus Estimate, is at +30.44%. This is a leading indicator of
a likely positive earnings surprise for the shares.
Zacks Rank #3 (Hold):
The stocks with Zacks Ranks of #1, #2 and #3 have a significantly
higher chance of beating earnings. The Sell rated stocks (#4 and
#5) should be avoided going into an earnings announcement.
The combination of Entergy Corporation's Zacks Rank #3 (Hold) and
+30.44% ESP makes us confident of a positive earnings beat on Apr
What is Driving Better-than-Expected Earnings?
The first quarter 2013 performance is expected to be driven by
the Utility and Entergy Wholesale Commodities segments.
Favorable price adjustments and lower income tax expenses are
expected to benefit the Utility segment. Weather in the first
quarter was more favorable than the comparable prior-year period
which also boosted demand at Utility. The Wholesale Commodities
segment was driven by higher nuclear energy and capacity pricing.
Other Stocks to Consider
Other companies in the utility industry worth considering on the
basis of our model, which shows that they have the right
combination of elements to post an earnings beat this quarter,
include the following:
Brookfield Infrastructure Partners L.P.
) has earnings ESP of +1.19% and carries a Zacks Rank #1 (Strong
) has earnings ESP of +8.16% and carries a Zacks Rank #2 (Buy).
American Electric Power Company Inc
) has earnings ESP of +2.47% and carries a Zacks Rank #2
AMER ELEC PWR (AEP): Free Stock Analysis
BROOKFIELD INFR (BIP): Free Stock Analysis
CLECO CORP (CNL): Free Stock Analysis Report
ENTERGY CORP (ETR): Free Stock Analysis
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