Why Is Entergy (ETR) Up 0.5% Since Last Earnings Report?

It has been about a month since the last earnings report for Entergy (ETR). Shares have added about 0.5% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Entergy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Entergy's Q3 Earnings Surpass Estimates, Revenues Improve Y/Y

Entergy Corporation reported third-quarter 2025 earnings of $1.53 per share, which surpassed the Zacks Consensus Estimate of $1.46 by 4.8%. The bottom line also improved 2% from the year-ago quarter’s figure of $1.50.

ETR’s Q3 Revenues

Entergy reported revenues of $3.81 billion, which beat the Zacks Consensus Estimate of $3.51 billion by 8.6%. The top line also inched up 12.4% from the year-ago quarter’s level of $3.39 billion.

Entergy’s Segmental Results

Utility: The segment’s earnings were $1.79 per share, down from $1.82 reported in the third quarter of 2024.

Parent & Other: The segment posted a loss of 26 cents per share, reflecting an improvement from a loss of 33 cents in the third quarter of 2024.

Highlights of Entergy’s Release

Operating expenses totaled $2.69 billion, up 19% from $2.26 billion recorded in the prior-year quarter.

The operating income amounted to $1.12 billion, down 0.9% from $1.13 billion registered in the year-ago period.

Total interest expenses were $324.9 million, up 10% from $295.1 million reported in the comparable period of 2024.

As of Sept. 30, 2025, the total electric retail customers served by the company increased 0.8% to 3.07 million.

Entergy’s Financial Highlights

As of Sept. 30, 2025, Entergy had cash and cash equivalents of $1.52 billion compared with $0.86 billion as of Dec. 31, 2024.

Long-term debt totaled $27.06 billion compared with $26.61 billion as of Dec. 31, 2024.

During the quarter, ETR generated cash from operating activities of $2.13 billion compared with $1.56 billion in the year-ago period.

Entergy’s Guidance

Entergy has narrowed its financial guidance for 2025. The company now expects to generate adjusted earnings in the range of $3.85 to $3.95 per share compared with the previous guidance of $3.75-$3.95.

The Zacks Consensus Estimate for ETR’s earnings is currently pegged at $3.90 per share, which is on par with the midpoint of its revised guided range.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in estimates revision.

VGM Scores

At this time, Entergy has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.

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 this revision indicates a downward shift. Interestingly, Entergy has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Entergy is part of the Zacks Utility - Electric Power industry. Over the past month, Edison International (EIX), a stock from the same industry, has gained 6.2%. The company reported its results for the quarter ended September 2025 more than a month ago.

Edison International reported revenues of $5.75 billion in the last reported quarter, representing a year-over-year change of +10.6%. EPS of $2.34 for the same period compares with $1.51 a year ago.

Edison International is expected to post earnings of $1.59 per share for the current quarter, representing a year-over-year change of +51.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -22.1%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Edison International. Also, the stock has a VGM Score of A.

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This article originally published on Zacks Investment Research (zacks.com).

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