It has been about a month since the last earnings report for Entergy (ETR). Shares have lost about 2.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Entergy due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Entergy Corporation before we dive into how investors and analysts have reacted as of late.
Entergy's Q2 Earnings Improve Y/Y, Revenues Beat Estimates
Entergy Corporation reported second-quarter 2025 earnings of $1.05 per share, which improved 9.4% from the year-ago quarter’s figure of 96 cents.
The Zacks Consensus Estimate was pegged at 91 cents per share.
The year-over-year bottom-line improvement can be attributed to higher operating revenues and operating income.
ETR’s Q2 Revenues
Entergy reported revenues of $3.33 billion, which beat the Zacks Consensus Estimate of $3.22 billion by 3.4%. The top line also inched up 12.7% from the year-ago quarter’s level, primarily driven by higher revenues from its electric utility and natural gas segments.
Entergy’s Segmental Results
Utility: The segment’s earnings were $1.34 per share, up from $1.03 reported in the second quarter of 2024.
Parent & Other: The segment posted a loss of 29 cents per share, reflecting an improvement from the loss of 91 cents per share reported in the second quarter of 2024.
Highlights of Entergy’s Release
Operating expenses totaled $2.49 billion, up 6.7% from $2.34 billion recorded in the prior-year quarter.
The operating income amounted to $837.4 million, up 35.6% from $617.6 million registered in the year-ago period.
Total interest expenses were $322.1 million, up 11.2% from $289.6 million reported in the comparable period of 2024.
As of June 30, 2025, the total retail customers served by the company increased 0.5% to 3.04 million.
Entergy’s Financial Highlights
As of June 30, 2025, Entergy had cash and cash equivalents of $1.18 billion compared with $0.86 billion as of Dec. 31, 2024.
Long-term debt totaled $28.11 billion compared with $26.61 billion as of Dec. 31, 2024.
In the first six months of 2025, ETR generated cash from operating activities of $1.26 billion compared with $1.03 billion in the first six months of 2024.
Entergy’s Guidance
Entergy reaffirmed its financial guidance for 2025. The company still expects to generate adjusted earnings in the range of $3.75-$3.95 per share.
The Zacks Consensus Estimate for ETR’s earnings is currently pegged at $3.89 per share, which is above the midpoint of its guided range.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, Entergy has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Entergy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Entergy Corporation (ETR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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