Insights into Entergy's Upcoming Earnings

Entergy ETR is preparing to release its quarterly earnings on Thursday, 2024-10-31. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Entergy to report an earnings per share (EPS) of $3.09.

Investors in Entergy are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Overview of Past Earnings

During the last quarter, the company reported an EPS beat by $0.16, leading to a 0.02% drop in the share price on the subsequent day.

Here's a look at Entergy's past performance and the resulting price change:

Analysts' Perspectives on Entergy

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Entergy.

Entergy has received a total of 18 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $132.33, the consensus suggests a potential 1.34% downside.

Peer Ratings Overview

The following analysis focuses on the analyst ratings and average 1-year price targets of Edison Intl, FirstEnergy and PPL, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Edison Intl received a Neutral consensus from analysts, with an average 1-year price target of $89.0, implying a potential 33.65% downside.
• Analysts currently favor an Neutral trajectory for FirstEnergy, with an average 1-year price target of $46.47, suggesting a potential 65.35% downside.
• PPL is maintaining an Outperform status according to analysts, with an average 1-year price target of $35.43, indicating a potential 73.59% downside.

Insights: Peer Analysis

The peer analysis summary provides a snapshot of key metrics for Edison Intl, FirstEnergy and PPL, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Entergy ranks at the bottom for Revenue Growth among its peers. It is at the bottom for Gross Profit as well. For Return on Equity, Entergy is also at the bottom.

Get to Know Entergy Better

Entergy is a holding company with five regulated integrated utilities that generate and distribute electricity to about 3 million customers in Arkansas, Louisiana, Mississippi, and Texas. It is one of the largest power producers in the country with 24 gigawatts of rate-regulated owned and leased power generation capacity. Entergy was the second-largest nuclear owner in the US before it began retiring and selling its plants in the Northeast in 2014. It plans to sell its two small gas utilities in Louisiana.

Understanding the Numbers: Entergy's Finances

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Over the 3 months period, Entergy showcased positive performance, achieving a revenue growth rate of 3.78% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Utilities sector.

Net Margin: Entergy's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 1.66%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Entergy's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 0.34%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Entergy's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.08%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a high debt-to-equity ratio of 1.97, Entergy faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Entergy visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.