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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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. The Motley Fool has no position in any of the stocks mentioned. 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.