Entergy Corporation (ETR) reported solid third quarter 2024 results, with earnings per share of $2.99 beating analyst estimates of $2.97. The company's financial performance was driven by several key factors:
Revenue declined 5.7% year-over-year to $3.39 billion, missing estimates of $3.46 billion. However, higher industrial sales, primarily to large customers in the petroleum refining industry, and rate increases contributed to top-line growth.
On the operational front, Entergy's Utility segment earnings increased due to the net effect of regulatory actions across its operating companies, lower non-service pension costs, and decreased other operating and maintenance expenses. These positive factors were partially offset by the impacts of unfavorable weather on retail volume, higher depreciation expense, and increased interest expense.
The Parent & Other segment reported lower earnings due to changes in legal provisions, lower non-service pension income, and higher interest expense related to the issuance of $1.2 billion in junior subordinated debentures in May 2024.
Entergy narrowed its 2024 adjusted earnings per share guidance range to $7.15 to $7.35 (pre-split), reflecting the company's strong performance and outlook. Additionally, the board approved a 2-for-1 stock split of Entergy's common stock, effective December 13, 2024.
Looking ahead, Entergy is exploring opportunities to expand its nuclear power capacity, including building a new reactor in Mississippi and increasing existing capacity by up to 300 megawatts. The company is also investing in renewable energy projects to meet the rapidly growing demand for electricity, particularly from data centers and other large customers.
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