The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Entergy missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly, and GAAP earnings per share improved significantly.
Gross margins contracted, operating margins were steady, net margins contracted.
Entergy booked revenue of $2.49 billion. The five analysts polled by S&P Capital IQ looked for net sales of $2.73 billion. Sales were 1.7% lower than the prior-year quarter's $2.53 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.94. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.90 per share on the same basis. GAAP EPS of $0.94 for Q4 were 31% lower than the prior-year quarter's $1.26 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 31.6%, 240 basis points worse than the prior-year quarter. Operating margin was 13.8%, about the same as the prior-year quarter. Net margin was 6.2%, 280 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.62 billion. On the bottom line, the average EPS estimate is $1.32.
Next year's average estimate for revenue is $11.70 billion. The average EPS estimate is $5.88.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 341 members out of 366 rating the stock outperform, and 25 members rating it underperform. Among 116 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 113 give Entergy a green thumbs-up, and three 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 $75.29.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.