The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Entergy whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly.
Gross margins grew, operating margins increased, net margins contracted.
Entergy recorded revenue of $2.96 billion. The four analysts polled by S&P Capital IQ predicted a top line of $3.42 billion on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $3.40 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 $1.95. The 13 earnings estimates compiled by S&P Capital IQ forecast $2.01 per share. GAAP EPS of $1.89 for Q3 were 46% lower than the prior-year quarter's $3.53 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 40.6%, 240 basis points better than the prior-year quarter. Operating margin was 23.3%, 560 basis points better than the prior-year quarter. Net margin was 11.4%, 710 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.89 billion. On the bottom line, the average EPS estimate is $0.83.
Next year's average estimate for revenue is $11.33 billion. The average EPS estimate is $5.45.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 344 members out of 369 rating the stock outperform, and 25 members rating it underperform. Among 106 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 103 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 $72.00.
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