Entergy (ETR) Provides Preliminary Q3 Earnings Guidance - Analyst Blog

Entergy Corporation (ETR) issued a preliminary earnings guidance for third quarter 2014 at $1.67 per share compared with $2.41 per share reported a year ago. The Zacks Consensus Estimate for the quarter is at $2.04 per share. According to GAAP, earnings are expected to be around $1.36 per share as compared to $1.34 reported in third quarter 2013.

The projected guidance includes charges related to the shutdown of Vermont Yankee Nuclear Power Station and cost for the decommissioning study completed in the third quarter. The company affirmed its operational earnings guidance in the range of $5.55 to $6.75 per share for 2014.

Segmental Guidance

Utility Segment: Though the figures have yet to be disclosed, Entergy revealed that revenue from this segment escalated from last year, attributable to a favorable rate case settlement and higher sales volume to industrial customers. However, milder-than-normal weather reduced earnings by 11 cents per share in the quarter in spite of the higher volume.

Earnings also dropped due to a higher effective income tax rate and increased non-fuel operation and maintenance expense. Cost related to electricity rate settlement with the Mississippi Public Service Commission could also add to the total costs.

Entergy Wholesale Commodities Segment: Operational earnings at the segment are expected to be hurt by higher costs from depreciation and a steeper income tax rate. Some of the cost burden was offset by lower non-fuel operation and maintenance expenses.

Parent & Other: Earnings from this segment declined as well because of higher income tax costs.

New Orleans, LA-based Entergy Corporation will report its third quarter earnings results on Nov 4, 2014, before the market opens.

Zacks Rank

Entergy Corporation currently has a Zacks Rank #3 (Hold). Other better-ranked stocks in the utility industry include IdaCorp, Inc. (IDA), Korea Electric Power Corp. (KEP) and Black Hills Corporation (BKH). All these stocks sport a Zacks Rank #1 (Strong Buy).

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