The 10-second takeaway
For the quarter ended June 30 (Q2), Entergy beat expectations on revenues and missed slightly on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share contracted significantly. GAAP earnings per share dropped significantly.
Margins contracted across the board.
Entergy booked revenue of $2.74 billion. The five analysts polled by S&P Capital IQ expected revenue of $2.62 billion on the same basis. GAAP reported sales were 8.7% higher than the prior-year quarter's $2.52 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.01. The 11 earnings estimates compiled by S&P Capital IQ anticipated $1.03 per share. Non-GAAP EPS of $1.01 for Q2 were 52% lower than the prior-year quarter's $2.11 per share. GAAP EPS of $0.92 for Q2 were 55% lower than the prior-year quarter's $2.06 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.1%, 490 basis points worse than the prior-year quarter. Operating margin was 12.7%, 90 basis points worse than the prior-year quarter. Net margin was 6.0%, 850 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.11 billion. On the bottom line, the average EPS estimate is $1.99.
Next year's average estimate for revenue is $10.98 billion. The average EPS estimate is $4.96.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 348 members out of 370 rating the stock outperform, and 22 members rating it underperform. Among 113 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give Entergy a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Entergy is hold, with an average price target of $69.77.
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