Entergy (ETR) to Report Q3 Earnings: What's in the Cards?

Entergy Corporation ETR is set to release third-quarter 2020 results on Oct 28, before the opening bell. In the last-reported quarter, the company delivered an earnings surprise of 11.38%.

Entergy beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 11.20%.

Factors to Consider

In the July-September 2020 quarter, the majority of territories served by Entergy witnessed warmer-than-normal temperature. This must have increased electricity usage for cooling purposes, which is expected to have boosted the company’s third-quarter top line.  

Moreover, positive effects of regulatory actions associated with the company’s customer-centric investments in Arkansas, Louisiana, Mississippi and Texas, are expected to have benefitted its third-quarter results.

The Zacks Consensus Estimate for Entergy’s third-quarter revenues, pegged at $3.22 billion, indicates an improvement of 2.4% from the year-ago quarter.

Entergy Corporation Price and EPS Surprise

Entergy Corporation Price and EPS Surprise

Entergy Corporation price-eps-surprise | Entergy Corporation Quote

A series of storm activities including Hurricane Sally and Laura, along with tropical storm Beta ravaged Entergy’s service territories, in the third quarter, causing widespread damage to its poles and electricity infrastructure, thereby causing notable outages. This may have pushed up operational expenses of this utility provider, thereby hurting its quarterly bottom line.

The Zacks Consensus Estimate for Entergy’s third-quarter earnings, pegged at $2.48 per share, indicates a decline of 1.6% from the year-ago quarter reported figure.

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 -2.34%. 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 #4 (Sell).

Stocks to Consider

Here are some players from the Utilities sector that have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Edison International EIX is set to release third-quarter earnings on Oct 27. It has an Earnings ESP of +3.45% and a Zacks Rank #3, presently.

CMS Energy CMS is set to release third-quarter earnings on Oct 29. It has an Earnings ESP of +0.15% and a Zacks Rank #3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

NiSource NI is expected to release third-quarter numbers on Nov 2. It has an Earnings ESP of +25.00% and a Zacks Rank of 3 currently.

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