Financial Data and Key Metrics Changes - The company reported an adjusted EPS of $2.99 for Q3 2024, raising the bottom of the guidance range by $0.10 due to strong results and a new capital investment plan [7][53]. - Operating cash flow increased to nearly $1.6 billion, up $157 million from the previous year, driven by timing of fuel and purchase power payments [56]. - The company expects a 6% dividend increase and a 2-for-1 stock split effective December 13, 2024 [65][66]. Business Line Data and Key Metrics Changes - Industrial sales growth is projected at a compound annual growth rate of 11% to 12% through 2028, primarily due to a new customer in Louisiana [8]. - Weather-adjusted retail sales growth was 5%, with industrial sales increasing by 10% [55]. Market Data and Key Metrics Changes - The company is seeing strong customer interest in renewable energy products, including green tariffs and nuclear clean tariffs, to support decarbonization goals [9]. - The preliminary capital plan through 2028 has increased by $7 billion, driven by new transmission and generation investments, including renewables [10][60]. Company Strategy and Development Direction - The company is focused on a significant capital investment plan to support customer requirements and growth in industrial sales [6]. - Entergy is actively exploring new nuclear options and evaluating potential power upgrades at existing facilities, aiming for a total of up to 300 megawatts [18][19]. - The company is committed to carbon capture and storage (CCS) technologies to comply with future federal emissions requirements and support customer decarbonization objectives [15][17]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential driven by macro trends such as onshoring clean energy and electrification [30]. - The company has developed and refined storm preparedness plans, resulting in effective responses to hurricanes with minimal injuries and quick power restoration [31][32]. Other Important Information - The company has received regulatory approvals for several resilience investments, including a $1.9 billion accelerated resilience plan in Louisiana [36][44]. - Entergy Louisiana submitted a request for approval of transmission and generation investments to support a new customer, with a decision expected by September 2025 [22][23]. Q&A Session Summary Question: What drove the major change in the 2026 EPS growth outlook? - Management indicated that the step-up in EPS growth is supported by incremental capital for significant customer growth, with a substantial amount already baked into the plan [71]. Question: Is the investment for the new customer fully covered under the rate agreement? - Management confirmed that investments are expected to be fully recoverable under existing rate mechanisms, with the new customer covering their marginal costs [73][74]. Question: How sustainable is the 8% to 9% EPS growth rate beyond 2026? - Management highlighted that various drivers, including clean energy and electrification, are expected to support sustainable growth into the next decade [82]. Question: What is the company's approach to developing new nuclear projects? - Management emphasized the importance of stakeholder engagement and the need for customer support to manage risks associated with large capital projects like nuclear [115][116]. Question: Will the capital expenditures from the new large customer be reflected in the update? - Management confirmed that all potential capital expenditures from the new customer are included in the current update [124].

Core Insights - Entergy Corporation (ETR) reported Q3 2024 earnings of $2.99 per share, exceeding the Zacks Consensus Estimate of $2.91 by 2.8%, but down 4.8% from $3.14 in the previous year [1] - The decline in earnings is attributed to lower revenues and increased interest expenses compared to the same quarter last year [1] Revenue Performance - Entergy's Q3 revenues were $3.39 billion, missing the Zacks Consensus Estimate of $3.46 billion by 2% and down 5.7% from $3.60 billion in the prior year, primarily due to reduced revenues from the electric utility segment [2] Segment Analysis - The Utility segment's earnings increased to $3.65 per share from $3.54 in Q3 2023 [3] - The Parent & Other segment reported a loss of 66 cents per share, worsening from a loss of 40 cents in the same quarter last year [3] Operating and Financial Highlights - Operating expenses decreased to $2.26 billion, down 7.7% from $2.45 billion in the prior-year quarter [4] - Operating income was $1.13 billion, a slight decline of 1.5% from $1.14 billion year-over-year [4] - Total interest expenses rose to $295.1 million, an increase of 15.5% from $255.4 million in the comparable period of 2023 [4] - As of September 30, 2024, Entergy served 3.04 million retail customers, a 0.7% increase [4] Cash and Debt Position - Entergy's cash and cash equivalents stood at $1.41 billion as of September 30, 2024, compared to $0.13 billion at the end of 2023 [5] - Long-term debt increased to $26.56 billion from $23.01 billion as of December 31, 2023 [5] - Cash generated from operating activities was $1.56 billion, up from $1.41 billion in the previous year [5] Guidance Update - Entergy updated its 2024 financial guidance, now expecting adjusted earnings in the range of $7.15-$7.35 per share, compared to the previous range of $7.05-$7.35 [6] - The current Zacks Consensus Estimate for ETR's earnings is $7.21 per share, which is below the midpoint of the new guidance range [6]

Company Performance - Entergy reported quarterly earnings of $2.99 per share, exceeding the Zacks Consensus Estimate of $2.91 per share, but down from $3.27 per share a year ago, representing an earnings surprise of 2.75% [1] - The company posted revenues of $3.39 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 2.02%, and down from $3.6 billion year-over-year [2] - Over the last four quarters, Entergy has surpassed consensus EPS estimates two times, but has not beaten consensus revenue estimates [2] Stock Performance - Entergy shares have increased approximately 32.8% since the beginning of the year, outperforming the S&P 500's gain of 21.9% [3] - The current Zacks Rank for Entergy is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.33 on $3 billion in revenues, and $7.21 on $12.2 billion in revenues for the current fiscal year [7] - The outlook for the Utility - Electric Power industry is currently in the top 39% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

[Earnings Release Summary](index=1&type=section&id=Earnings%20Release%20Summary) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported Q3 2024 adjusted EPS of $2.99, a decrease from the prior year primarily due to unfavorable weather impacts **Q3 & YTD 2024 Earnings Summary** | Metric | Q3 2024 | Q3 2023 | Change | YTD 2024 | YTD 2023 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **As-Reported EPS** | $2.99 | $3.14 | ($0.15) | $3.58 | $6.45 | ($2.87) | | **Adjusted EPS (Non-GAAP)** | $2.99 | $3.27 | ($0.28) | $5.99 | $6.25 | ($0.26) | | **As-Reported Earnings ($M)** | $645 | $667 | ($22) | $769 | $1,369 | ($600) | | **Adjusted Earnings ($M, Non-GAAP)** | $645 | $694 | ($49) | $1,286 | $1,327 | ($41) | [Business Highlights & Strategic Developments](index=1&type=section&id=Business%20Highlights%20%26%20Strategic%20Developments) The company is advancing its growth strategy through new generation projects, infrastructure investments, and key shareholder actions - The company is pursuing significant new investments, including a new natural gas power station in Mississippi and 3 gigawatts of solar resources in Louisiana[2](index=2&type=chunk) - Progress in renewable energy includes placing the 100-megawatt Walnut Bend Solar facility in service and closing on the West Memphis Solar and Driver Solar projects[2](index=2&type=chunk) - The Board of Directors approved a **6% increase** in the quarterly dividend to $1.20 per share and a **two-for-one stock split**, effective with trading starting December 13, 2024[2](index=2&type=chunk) [Business Segment Performance](index=2&type=section&id=Business%20Segment%20Performance) Utility segment earnings declined due to weather and higher costs, while the Parent & Other segment reported a larger adjusted loss [Utility Segment](index=2&type=section&id=Utility%20Segment) The Utility segment's adjusted earnings decreased to $787 million, driven by negative weather impacts and higher expenses **Utility Segment Q3 Earnings** | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | **As-Reported Earnings ($M)** | $787 | $752 | $35 | | **Adjusted Earnings ($M, Non-GAAP)** | $787 | $810 | ($24) | | **As-Reported EPS** | $3.65 | $3.54 | $0.11 | | **Adjusted EPS (Non-GAAP)** | $3.65 | $3.82 | ($0.17) | - Key drivers for the change in earnings included positive effects from regulatory actions and lower O&M, which were more than offset by negative impacts from weather, higher depreciation expense, and higher interest expense[9](index=9&type=chunk) [Parent & Other Segment](index=3&type=section&id=Parent%20%26%20Other%20Segment) The Parent & Other segment's adjusted loss widened to $(142) million due to lower pension income and higher interest expense **Parent & Other Segment Q3 Loss** | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | **As-Reported Loss ($M)** | $(142) | $(85) | $(57) | | **Adjusted Loss ($M, Non-GAAP)** | $(142) | $(117) | $(25) | | **As-Reported EPS** | $(0.66) | $(0.40) | $(0.26) | | **Adjusted EPS (Non-GAAP)** | $(0.66) | $(0.55) | $(0.11) | - Drivers for the increased loss included lower non-service pension income, changes in legal provisions, and higher interest expense[13](index=13&type=chunk) [2024 Guidance and Outlook](index=3&type=section&id=2024%20Guidance%20and%20Outlook) The company narrowed its 2024 adjusted EPS guidance and announced a two-for-one forward stock split - The company narrowed its 2024 adjusted EPS guidance to a range of **$7.15 to $7.35** (pre-split)[16](index=16&type=chunk) - A **two-for-one forward stock split** was announced, with a record date of December 5, 2024, and distribution on December 12, 2024[15](index=15&type=chunk) [Financial Appendices](index=7&type=section&id=Financial%20Appendices) [Appendix A: Consolidated Results and Adjustments](index=8&type=section&id=Appendix%20A%3A%20Consolidated%20Results%20and%20Adjustments) This appendix reconciles GAAP to non-GAAP earnings and shows an increase in consolidated operating cash flow to $1.56 billion **Q3 2024 GAAP to Non-GAAP Reconciliation ($M)** | Segment | As-Reported Earnings | Adjustments | Adjusted Earnings (Non-GAAP) | | :--- | :--- | :--- | :--- | | **Utility** | $787 | $0 | $787 | | **Parent & Other** | $(142) | $0 | $(142) | | **Consolidated** | $645 | $0 | $645 | **Q3 Operating Cash Flow ($M)** | Segment | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | **Utility** | $1,600 | $1,387 | $213 | | **Parent & Other** | $(37) | $18 | $(55) | | **Consolidated** | $1,562 | $1,405 | $157 | [Appendix B: Earnings Variance Analysis](index=12&type=section&id=Appendix%20B%3A%20Earnings%20Variance%20Analysis) This section details the drivers of the $0.28 decrease in adjusted consolidated EPS from Q3 2023 to Q3 2024 - The change in Q3 adjusted consolidated EPS from $3.27 in 2023 to $2.99 in 2024 was a **decrease of $0.28**[42](index=42&type=chunk) - Key negative drivers for the quarterly EPS variance included electric volume/weather **(-$0.41)**, higher depreciation **(-$0.21)**, and higher interest expense **(-$0.14)**[42](index=42&type=chunk)[46](index=46&type=chunk) - Partially offsetting factors included favorable retail electric prices **(+$0.32)** and lower Other O&M **(+$0.10)**[42](index=42&type=chunk)[46](index=46&type=chunk) [Appendix C: Utility Operating and Financial Measures](index=17&type=section&id=Appendix%20C%3A%20Utility%20Operating%20and%20Financial%20Measures) This appendix shows flat total retail sales, but a 5.0% weather-adjusted increase driven by strong industrial demand **Q3 GWh Sold by Customer Class** | Customer Class | Q3 2024 (GWh) | Q3 2023 (GWh) | % Change | % Weather Adjusted Change | | :--- | :--- | :--- | :--- | :--- | | **Residential** | 11,519 | 12,661 | (9.0)% | 1.3% | | **Commercial** | 8,394 | 8,648 | (2.9)% | 2.0% | | **Industrial** | 15,150 | 13,781 | 9.9% | 9.9% | | **Total Retail** | 35,747 | 35,790 | (0.1)% | 5.0% | - The strong **9.9% increase** in industrial sales was mainly due to higher sales to large industrial customers, particularly in the petroleum refining industry[50](index=50&type=chunk) [Appendix D: Consolidated Financial Measures](index=18&type=section&id=Appendix%20D%3A%20Consolidated%20Financial%20Measures) This section presents key financial ratios indicating an improved credit profile, with FFO to adjusted debt increasing to 13.5% **Key Financial Measures (as of Sept 30)** | Metric | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | **As-reported ROE (LTM)** | 12.2% | 11.4% | 0.8% | | **Adjusted ROE (LTM, Non-GAAP)** | 9.7% | 11.1% | (1.4)% | | **Adjusted debt to adjusted capitalization** | 64% | 66% | (2)% | | **FFO to adjusted debt (LTM)** | 13.5% | 12.4% | 1.1% | | **Gross liquidity ($M)** | $5,757 | $5,865 | ($108) | [Appendix E: Definitions and Abbreviations](index=19&type=section&id=Appendix%20E%3A%20Definitions%20and%20Abbreviations) This appendix provides definitions for key financial measures and a list of abbreviations used in the report - This section defines key non-GAAP terms used for performance evaluation, such as Adjusted EPS, Adjusted ROE, and FFO to adjusted debt[55](index=55&type=chunk) - A comprehensive list of abbreviations is provided, including company-specific terms like E-LA (Entergy Louisiana) and FRP (Formula Rate Plan), and industry terms like MISO and FERC[57](index=57&type=chunk) [Appendix F: Other GAAP to non-GAAP Reconciliations](index=21&type=section&id=Appendix%20F%3A%20Other%20GAAP%20to%20non-GAAP%20Reconciliations) This appendix provides detailed reconciliations for key non-GAAP metrics including ROE, FFO to debt, and liquidity ratios - Reconciles Last Twelve Months (LTM) As-reported net income of $1,757 million to Adjusted earnings of $1,397 million, resulting in an **Adjusted ROE of 9.7%**[60](index=60&type=chunk) - Details the calculation of FFO to adjusted debt, starting with total debt of $29.1 billion and adjusting it to $28.3 billion to derive the **13.5% ratio**[61](index=61&type=chunk) - Provides a breakdown of liquidity, showing **Gross Liquidity of $5.8 billion** and Net Liquidity of $6.4 billion as of September 30, 2024[62](index=62&type=chunk) [Financial Statements](index=24&type=section&id=Financial%20Statements) [Consolidating Balance Sheets](index=24&type=section&id=Consolidating%20Balance%20Sheets) Total assets grew to $64.5 billion as of September 30, 2024, with total shareholders' equity at $15.0 billion **Consolidated Balance Sheet Summary ($ thousands)** | Account | Sept 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $5,217,806 | $3,660,869 | | **Total Assets** | $64,462,049 | $59,703,396 | | **Total Current Liabilities** | $5,859,246 | $6,396,492 | | **Total Liabilities** | $49,100,928 | $44,740,880 | | **Total Shareholders' Equity** | $15,032,842 | $14,622,647 | [Consolidating Income Statements](index=28&type=section&id=Consolidating%20Income%20Statements) Q3 2024 operating revenues were $3.39 billion, with net income attributable to the corporation at $645 million **Q3 Income Statement Summary ($ thousands)** | Account | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | **Total Operating Revenues** | $3,389,100 | $3,595,522 | | **Operating Income** | $1,125,862 | $1,143,383 | | **Net Income Attributable to ETR** | $644,940 | $666,755 | [Consolidated Cash Flow Statements](index=36&type=section&id=Consolidated%20Cash%20Flow%20Statements) Year-to-date net cash from operations was $3.11 billion, with increased cash used in investing and provided by financing **YTD Cash Flow Summary ($ thousands)** | Cash Flow Category | Nine Months Ended Sept 30, 2024 | Nine Months Ended Sept 30, 2023 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $3,108,828 | $3,230,993 | | **Net Cash used in Investing Activities** | $(4,001,615) | $(3,579,062) | | **Net Cash from Financing Activities** | $2,172,051 | $1,643,679 | | **Net Increase in Cash** | $1,279,264 | $1,295,610 |

Core Insights - Entergy Corporation reported third quarter 2024 earnings per share (EPS) of $2.99, down from $3.14 in the same quarter of 2023, reflecting a decrease of 4.8% [4][6][10] - The company narrowed its 2024 adjusted EPS guidance range to $7.15 to $7.35 (pre-split) [2][13] - Entergy's Board of Directors declared a quarterly dividend of $1.20 per share, marking a 6% increase [2][12] Financial Performance - For Q3 2024, Entergy's consolidated earnings were $645 million, compared to $667 million in Q3 2023, a decrease of $22 million [4][27] - Adjusted earnings for Q3 2024 were $645 million, down from $694 million in Q3 2023, reflecting a decrease of $49 million [3][4] - Year-to-date 2024 earnings were reported at $769 million, significantly lower than $1.369 billion in 2023, a decrease of $600 million [3][4] Business Highlights - The Utility segment reported earnings of $787 million for Q3 2024, an increase from $752 million in Q3 2023 [6][10] - Entergy Arkansas recorded a write-off of $(78 million) in Q3 2023 due to a regulatory incident, which impacted year-over-year comparisons [7][10] - Entergy Louisiana filed for approval of significant new transmission and generation investments to support a large customer [2][6] Operational Developments - Entergy Arkansas placed the 100-megawatt Walnut Bend Solar project in service [2] - Entergy Mississippi announced plans to build its first new natural gas power station in 50 years [2] - Entergy Louisiana issued a request for proposals (RFP) to acquire 3 gigawatts of solar resources [2] Regulatory and Strategic Actions - The Louisiana Public Service Commission (LPSC) approved several items for Entergy Louisiana, including a fuel recovery plan renewal and a settlement with SERI [2] - Entergy's Board approved a two-for-one stock split, effective December 13, 2024 [2][12] - Entergy was recognized as one of the nation's top utilities in economic development for the 17th consecutive year [2]

Core Viewpoint - Entergy Corporation (ETR) has announced a 6.2% increase in its quarterly dividend, reflecting a commitment to returning value to shareholders while pursuing significant capital investments to enhance its operational capabilities and sustainability [1][2][3]. Dividend Announcement - The revised quarterly dividend will be $1.20 per share, payable on December 2, 2024, to shareholders of record as of November 13, 2024 [1]. - The new annualized dividend rate is $4.80, with a current dividend yield of 3.52%, outperforming the Zacks S&P 500 composite's yield of 1.23% [2]. Capital Investment Strategy - Entergy plans to invest $19.76 billion from 2024 to 2026 to modernize and diversify its portfolio, including $10.63 billion specifically for transmission and distribution projects [3]. - These investments aim to enhance grid resilience and customer service, which are expected to improve revenue generation prospects and support future dividend increases [3][4]. Grid Resilience Initiatives - Entergy is undertaking a grid hardening plan authorized by the Louisiana Public Service Commission, involving 2,100 projects with a total funding of $1.9 billion over five years [4]. - Such investments are anticipated to improve operational efficiencies and profitability, enabling the company to fund shareholder-friendly initiatives in the future [4]. Industry Context - Other utility companies have also announced dividend hikes, reflecting a trend in the industry where stable income from regulated operations allows for regular dividend payments and buybacks [5]. - IDACORP, New Jersey Resources, and National Fuel Gas Company have all recently increased their dividends, indicating a broader positive sentiment in the utility sector [6][7][8]. Stock Performance - Over the past six months, ETR shares have increased by 27.2%, significantly outperforming the industry growth of 13.6% [9].

Core Points - Entergy's board of directors declared a quarterly dividend payment of $1.20 per share, an increase of $0.07 per share [1] - The dividend is payable on December 2, 2024, to shareholders of record as of November 13, 2024 [1] - Entergy has consistently paid cash dividends on its common stock since 1988 [1] Company Overview - Entergy is a Fortune 500 company serving 3 million customers across Arkansas, Louisiana, Mississippi, and Texas [1] - The company is focused on investing in the reliability and resilience of the energy system while transitioning to cleaner energy solutions [1] - Entergy has contributed over $100 million annually in economic benefits to local communities since 2018 through philanthropy, volunteerism, and advocacy [1] - The company is headquartered in New Orleans, Louisiana, and employs approximately 12,000 people [1]

Entergy (ETR) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 31. On ...

NEW ORLEANS, Oct. 24, 2024 /PRNewswire/ -- Entergy will report its third-quarter 2024 financial results before the market opens Thursday, Oct. 31.Drew Marsh, chair and chief executive officer, Kimberly Fontan, executive vice president and chief financial officer, and company leaders invite you to listen to a live webcast discussion of Entergy's financial results at 10 a.m. Central time that day. The webcast may be accessed by visiting Entergy's website at entergy.com/investors or by dialing 888-440-4149, co ...

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