Entergy Gears Up to Report Q1 Earnings: What's in the Cards?

Entergy Corporation ETR is scheduled to release first-quarter 2025 results on April 29, 2025, before market open.

This utility company delivered an earnings surprise of 4.76% in the last reported quarter. However, Entergy has a trailing four-quarter negative earnings surprise of 2.26%, on average. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Let’s discuss the factors that are likely to affect the upcoming quarterly results.

Factors to Consider Ahead of ETR’s Results

Entergy’s service territories witnessed above-normal weather patterns for the majority of the first quarter. This is likely to have hurt electricity demand from its customers for heating purposes this winter, thereby adversely affecting the company’s top-line performance.

Nevertheless, strong customer growth, primarily driven by increasing data center demand in its service areas and industrial customer growth, is likely to have added impetus to ETR’s overall revenues in the first quarter.

Adverse weather patterns, including heavy snowfall, rainfall, flash floods and a few tornadoes, affected some parts of ETR’s service territories during the first quarter. This is expected to have disrupted the company’s services in those areas, thereby resulting in outages for some of its customers. ETR’s overall revenues are likely to have been partly impacted due to these outages.

Solid revenue expectations, benefits of increasing customer interest in ETR’s renewable projects and favorable returns from its prior capital investment in infrastructural upgrades are likely to have boosted its overall quarterly earnings.

Entergy Corporation Price and EPS Surprise

Entergy Corporation price-eps-surprise | Entergy Corporation Quote

Q1 Expectations for Entergy

The Zacks Consensus Estimate for ETR’s sales is pegged at $3.01 billion, which indicates year-over-year growth of 7.6%.

The consensus estimate for earnings per share is pegged at 62 cents, which indicates a year-over-year increase of 14.8%.

What Our Model Predicts for Entergy

Our proven model predicts an earnings beat for Entergy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here as seen below.

Earnings ESP: The company’s Earnings ESP is +23.08%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of Zacks Rank #1 stocks here.

Other Stocks to Consider

Investors can consider the following players from the same industry, which also have the right combination of elements to post an earnings beat in their quarterly results.

Dominion Energy D is scheduled to report its first-quarter 2025 results on May 1, before market open. It has an Earnings ESP of +1.74% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for sales is pegged at $3.84 billion, which indicates a 5.8% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pinned at 77 cents per share, which indicates year-over-year growth of 40%.

American Electric Power AEP is scheduled to report its first-quarter 2025 results on May 6, before market open. It has an Earnings ESP of +15.17% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for sales is pegged at $5.35 billion, which indicates a 7% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pinned at $1.75 per share, which indicates year-over-year growth of 37.8%.

Evergy EVRG is scheduled to report its first-quarter 2025 results on May 8, before market open. It has an Earnings ESP of +5.70% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for sales is pegged at $1.41 billion, which indicates a 6.2% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pinned at 64 cents per share, which indicates year-over-year growth of 18.5%.

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

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