Entergy’s third-quarter earnings rose as electricity sales increased and regulatory rate actions supported its utility business. Higher interest and maintenance expenses offset part of the improvement. The US power company narrowed its annual adjusted earnings guidance, raising the lower end of the range after quarterly earnings exceeded the Zacks consensus estimate.
Entergy, the US electricity company serving Arkansas, Louisiana, Mississippi and Texas, reported third-quarter earnings of 940 million dollars, compared with 694 million dollars a year earlier. Earnings per share increased to 1.98 dollars from 1.53 dollars. Both reported and adjusted earnings were identical for the quarter.[1]
Quarterly earnings per share of 1.98 dollars exceeded the 1.71 dollars expected in the Zacks consensus.[1], [2]
Retail electricity sales increased 7.4 per cent to 39,864 gigawatt-hours. After adjustment for weather, growth was 4.5 per cent. Weather-adjusted residential sales increased 6.1 per cent, industrial sales rose 4.9 per cent and commercial sales grew 1.9 per cent. Entergy attributed the industrial increase to higher demand from data centers and primary metals customers.[1]
The company estimated that weather contributed 116 million dollars to after-tax earnings, compared with 28 million dollars a year earlier. Utility earnings increased to 1,079 million dollars from 810 million dollars, supported by sales, regulatory rate actions and returns on utility investments.[1]
Higher interest, operating and maintenance, and depreciation expenses partly offset the utility’s gains. Parent and Other reported a loss of 139 million dollars, widening from 117 million dollars. The company attributed the wider loss primarily to higher interest expenses. Entergy narrowed its full-year adjusted earnings guidance to between 4.35 dollars and 4.45 dollars per share from between 4.25 dollars and 4.45 dollars, raising the lower end while retaining the upper end.[1]
