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

Entergy Corporation ETR is set to release second-quarter 2020 results on Jul 29, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 21.28%.

Entergy missed the Zacks Consensus Estimate in one out of the four trailing quarters and beat the consensus mark in the other three, the average surprise being 7.81%.

Let’s see how things have shaped up prior to this announcement.

Factors to Consider

In the April-June 2020 quarter, the majority of territories served by Entergy witnessed mixed below-normal-cold temperature. This must have increased electricity usage, which is expected to have boosted second-quarter top line.  

Moreover, new rates for Entergy Mississippi that became effective in May 2020 are likely to have boosted revenues.

Entergy Corporation Price and EPS Surprise

Entergy Corporation Price and EPS Surprise

Entergy Corporation price-eps-surprise | Entergy Corporation Quote


The Zacks Consensus Estimate for Entergy’s second-quarter revenues, pegged at $2.81 billion, indicates an improvement of 5.3% from the year-ago quarter.

While revenue growth is expected to have contributed to the company’s quarterly earnings, factors like losses on decommissioning trust investments on account of the shutdown of Pilgrim plant along with higher depreciation and interest expenses might have hurt the company’s bottom linein the soon-to-be reported quarter.

The Zacks Consensus Estimate for Entergy’s second-quarter earnings, pegged at $1.26 per share, indicates a decline of 6.7% from the year-ago quarter.

Earnings Whispers

Our proven model doesn’t conclusively predict 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. But that’s not the case here.

Earnings ESP: The company’s Earnings ESP is -4.12%. 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.

Stocks to Consider

Here are a few companies from the Utilities sector that have the right combination of elements to post an earnings beat in this reporting cycle.

CenterPoint Energy CNP has an Earnings ESP of +24.14% and a Zacks Rank #3.

American Electric Power Company AEP has an Earnings ESP of +4.93% and a Zacks Rank #3.

DTE Energy DTE has an Earnings ESP of +6.03% and a Zacks Rank #3.

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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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