Group 1: Tariff Fatigue and Trade War Impact - Tariff fatigue is a market condition where prolonged tariffs lead to investor fatigue, prompting a search for companies that can withstand or benefit from tariffs [1] - The onset of a full-blown trade war has intensified tariff fatigue, causing global market disarray and investor uncertainty [1][2] - The current economic climate necessitates investment strategies that prioritize resilience and adaptability rather than mere profit-seeking [2] Group 2: U.S. Tariff Strategy and Global Response - The Trump administration's tariffs are part of a strategy to address issues beyond economic protectionism, including drug trafficking and illegal immigration [4] - Retaliatory tariffs from countries like China, Canada, and Mexico target key sectors of the U.S. economy, particularly agriculture, as a countermeasure to U.S. trade policies [5] - The global response includes criticism from international bodies and political leaders, highlighting potential widespread economic damage and loss of cooperation [6] Group 3: Economic Consequences and Business Reactions - Stock markets have reacted negatively, reflecting increased investor uncertainty and risk aversion, with economists warning of rising inflation and potential recession [7] - Businesses are pausing investments and delaying orders due to uncertainty and rising costs, creating a climate of instability across the economy [8] Group 4: Company-Specific Insights - Nucor Corporation, a major domestic steel producer, is expected to benefit from reduced foreign competition, with a 12-month stock price forecast of $163.13, indicating a 23.58% upside [9][10] - Nucor's domestic focus and diversified product portfolio may provide insulation from trade war disruptions, allowing it to adapt to shifting demand patterns [12] - Trex Company, specializing in recycled wood-alternative decking, may have a competitive advantage due to its domestic sourcing and commitment to sustainability, with a stock price forecast of $78.63, indicating a 36.58% upside [14][15] - Entergy Corporation, a domestic electric utility, offers stability during trade war turbulence, with a stock price forecast of $82.14 and a dividend yield of 2.82% [18][19][21] Group 5: Investment Strategy Adjustments - The evolving economic landscape necessitates a more prudent and defensive investment approach, focusing on companies with strong financial fundamentals and domestic operations [22] - Despite potential market risks, companies like Nucor, Trex, and Entergy present compelling investment opportunities in the current climate [13][17][20]

Financial Performance - Entergy Corporation reported a revenue increase of 5% year-over-year, reaching $12.5 billion for the fiscal year 2023[28]. - The company achieved a net income of $1.2 billion, reflecting a 10% increase compared to the previous year[28]. - Entergy's net income attributable to the corporation for 2024 was $1,826,704, a decrease of 27% compared to $2,507,127 in 2023[48]. - Operating revenues for 2024 were $11,806 million, down from $12,023 million in 2023, reflecting a decrease of 1.8%[52]. - Consolidated net income attributable to Entergy Corporation for 2024 was $1,055,590, a decline of 55.3% compared to $2,356,536 in 2023[215]. - Basic earnings per share decreased to $2.47 in 2024 from $5.57 in 2023, reflecting a 55.7% drop[215]. - Total operating revenues for 2024 were $11,879,653, a decrease of 2.2% from $12,147,412 in 2023[215]. - Operating income increased to $2,651,090 in 2024, up 1.3% from $2,617,975 in 2023[215]. - Total operating expenses decreased to $9,228,563 in 2024, down 3.2% from $9,529,437 in 2023[215]. - Interest expense rose to $1,203,588 in 2024, an increase of 15.1% from $1,046,164 in 2023[215]. - Comprehensive income attributable to Entergy Corporation for 2024 was $1,260,819, a decrease of 47.1% from $2,385,830 in 2023[220]. Customer and Market Growth - Customer growth was noted at 2.5%, with a total of 3 million customers served across its operating regions[28]. - The anticipated load growth may not materialize, posing risks to Entergy's financial performance[34]. - The impact of geopolitical events, such as the military activities between Russia and Ukraine, on electricity demand and supply chain disruptions[36]. - The effects of inflation and economic conditions on customer demand for electricity[34]. Investment and Capital Expenditures - Entergy expects to invest approximately $20 billion over the next five years in infrastructure improvements and renewable energy projects[28]. - Planned capital investments for 2025 total $8.395 billion, with generation investments at $4.105 billion and transmission investments at $1.55 billion[101]. - Construction/capital expenditures for 2024 were $4,838,339, an increase from $4,440,652 in 2023[223]. Renewable Energy and Sustainability - The company is focusing on expanding its renewable energy portfolio, targeting a 30% increase in renewable generation capacity by 2025[28]. - Entergy's commitment to achieve net-zero carbon emissions by 2050, with increasing investments in renewable power generation and carbon capture technologies[34]. - Entergy's focus on enhancing its carbon-free energy capacity and reducing its carbon emission rate[34]. Operational Efficiency and Cost Management - Entergy plans to enhance its operational efficiency, aiming for a 15% reduction in operational costs by 2024[28]. - The company is actively pursuing strategic acquisitions to bolster its market position, with potential targets in the renewable energy sector[28]. - Entergy's strategies to manage capital projects effectively to meet the growing demand for electricity, particularly from large data centers[34]. - Other operation and maintenance expenses increased from $2,838 million in 2023 to $2,851 million in 2024, primarily due to higher compensation and benefits costs, energy efficiency expenses, and transmission costs[61]. Regulatory and Compliance Challenges - The company anticipates regulatory challenges but remains committed to maintaining compliance and adapting to new regulations[28]. - Entergy Arkansas implemented a formula rate plan rate increase effective January 2024, contributing to the retail electric price variance[59]. - The LPSC has proposed new reporting and compliance obligations for utilities, including grid hardening plans and storm restoration plans[127]. - Entergy's rates are subject to regulatory rate-setting processes, impacting multiple financial statement line items and disclosures[209]. Debt and Financing - Entergy's debt to capital ratio increased to 65.3% in 2024 from 63.8% in 2023, primarily due to net issuance of long-term debt[83]. - Entergy Corporation has a credit facility with a borrowing capacity of $3 billion, with an estimated interest rate of 5.96% for the year ended December 31, 2024[88]. - Interest expense increased due to the issuance of $1.2 billion of junior subordinated debentures in May 2024 and higher commercial paper balances[68]. - Entergy expects to issue approximately $4.7 billion of equity through 2028, with $1.4 billion already contracted under forward sale agreements as of December 31, 2024[138]. Pension and Employee Benefits - Entergy's estimated qualified pension cost for 2025 is $85.3 million, a decrease from $391.5 million in 2024, which included settlement costs of $328 million[180]. - Entergy contributed $270 million to its qualified pension plans in 2024 and estimates contributions will be approximately $240 million in 2025[188]. - The company reported a pension settlement charge of $319,675 in 2024, indicating a new strategy in managing pension liabilities[223]. Technology and Innovation - Entergy's new technology initiatives include investments in smart grid technology, projected to improve service reliability by 20%[28]. - Entergy's ability to effectively implement new technologies and manage associated challenges, including data security[34]. - Increased cybersecurity risks due to remote work arrangements and the potential impact on operational control[36]. Environmental and Legal Risks - Entergy is subject to various federal and state laws and regulations, which expose it to environmental, litigation, and other risks[191]. - Entergy conducts studies to determine the extent of required environmental remediation and has recorded liabilities based on the likelihood of loss and expected dollar amounts[192]. - The company regularly reviews lawsuits in which it is named as a defendant and assesses the likelihood of loss, recording liabilities for cases deemed probable[193].

Core Insights - Entergy Corporation (ETR) reported fourth-quarter 2024 adjusted earnings of 66 cents per share, exceeding the Zacks Consensus Estimate of 63 cents by 4.8% and improving 153.8% from the previous year's figure of 26 cents [1] - For the full year 2024, adjusted earnings were $3.65 per share, surpassing the Zacks Consensus Estimate of $3.63 and reflecting a 7.7% increase from the year-ago figure of $3.39 [3] Financial Performance - Entergy's fourth-quarter revenues were $2.74 billion, missing the Zacks Consensus Estimate of $3.03 billion by 9.4%, but showing a slight increase of 0.6% from the previous year [4] - The company's full-year revenues for 2024 totaled $11.88 billion, down from $12.15 billion in the prior year and also missing the Zacks Consensus Estimate of $12.16 billion [4] Segment Performance - The Utility segment reported earnings of 97 cents per share, up from 57 cents in the fourth quarter of 2023 [5] - The Parent & Other segment posted a loss of 31 cents per share, remaining flat year over year [5] Operating Metrics - Operating expenses decreased to $2.07 billion, down 16% from $2.47 billion in the prior-year quarter [6] - Operating income rose to $0.67 billion, up 161% from $0.26 billion in the year-ago period [6] - Total interest expenses increased to $298.9 million, up 17.5% from $254.3 million reported in the comparable period of 2023 [6] Customer Base and Cash Position - As of December 31, 2024, Entergy served 3.04 million retail customers, an increase of 0.7% [6] - The company had cash and cash equivalents of $0.86 billion, significantly up from $0.13 billion as of December 31, 2023 [7] Debt and Cash Flow - Long-term debt increased to $26.62 billion from $23.01 billion as of December 31, 2023 [7] - Cash generated from operating activities was $1.38 billion, compared to $1.06 billion in 2023 [7] Future Guidance - Entergy provided guidance for 2025, expecting adjusted earnings in the range of $3.75-$3.95 per share, with the Zacks Consensus Estimate currently at $3.88 per share [8] Market Position - Entergy currently holds a Zacks Rank 2 (Buy) [9]

Financial Data and Key Metrics Changes - Entergy reported an adjusted EPS of $3.65 for 2024, which is in the top half of the guidance range [8] - The company raised its long-term growth outlook through 2028 to greater than 8% [8][40] - Weather-adjusted retail sales grew approximately 4%, driven by strong industrial growth of more than 8% [37] Business Line Data and Key Metrics Changes - Industrial sales increased by 8% for the year and 15% for the fourth quarter [10] - The combined utility expects industrial sales to compound annually at 12% to 13% from 2024 through 2028 [12] Market Data and Key Metrics Changes - Entergy announced a new electric service agreement with a large customer in Mississippi, with expectations to sign an ESA with Meta to expand capacity needs [11] - The company has a robust pipeline for potential growth, particularly in data centers, with 5 to 10 gigawatts of opportunity [13] Company Strategy and Development Direction - Entergy plans to invest $37 billion over the next four years to support customer growth and improve system resilience [19] - The company is expanding its renewables portfolio and has active requests for proposals for new renewables in Arkansas and Louisiana [20] - Entergy is exploring new nuclear options and has partnerships to investigate various technologies, including SMRs [58][132] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing growth opportunities and highlighted a strong outlook with double-digit industrial sales growth [33] - The company is focused on stakeholder engagement and has successfully concluded several regulatory processes [15][16] Other Important Information - Entergy executed a 2-for-1 stock split in December, doubling its share count [35] - The company has secured $1.4 billion of equity through its ATM program, with plans to exercise it in 2025 and 2026 [41] Q&A Session Summary Question: Core drivers of the $3 billion CapEx update - Management indicated that the capital plan is largely focused on generation for both dispatchable and renewables, with some distribution investment included [54] Question: New nuclear technology focus - Management is considering all forms of new nuclear, including large-scale reactors and SMRs, to provide the best risk profile and value for stakeholders [57][58] Question: Impact of new customers on growth - Management stated that each new customer would be unique, and the investment needed to support them would drive overall growth [68] Question: Financing incremental CapEx - Management discussed optimizing operating cash flow and leveraging large customers to manage equity needs effectively [96] Question: Resiliency programs and capital plan - Management expects to seek approvals for the next phase of resiliency programs by the end of the year [102] Question: Dividend commitment - Management confirmed a target of 6% annual dividend growth, with a potential decline in payout ratio over the outlook period [107] Question: Competition for large load customers - Management noted that competition is global, and Entergy offers a comprehensive value proposition for large load customers [151]

Fourth quarter 2024 earnings call 0 February 18, 2025 Caution regarding forward-looking statements and Regulation G compliance In this presentation, and from time to time, Entergy Corporation makes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, statements regarding Entergy's 2025 earnings guidance; financial and operational outlooks; industrial load growth outlooks; statements regar ...

Group 1 - Entergy reported quarterly earnings of $0.66 per share, exceeding the Zacks Consensus Estimate of $0.63 per share, and showing a significant increase from $0.26 per share a year ago, resulting in an earnings surprise of 4.76% [1] - The company posted revenues of $2.74 billion for the quarter ended December 2024, which was 9.36% below the Zacks Consensus Estimate, and a slight increase from $2.72 billion year-over-year [2] - Entergy has surpassed consensus EPS estimates three times over the last four quarters, but has not beaten consensus revenue estimates during the same period [2] Group 2 - The stock has gained approximately 8.8% since the beginning of the year, outperforming the S&P 500's gain of 4% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The trend for estimate revisions ahead of the earnings release was favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Group 3 - Current consensus EPS estimate for the upcoming quarter is $0.69 on revenues of $2.99 billion, and for the current fiscal year, it is $3.88 on revenues of $12.7 billion [7] - The Utility - Electric Power industry is currently ranked in the bottom 44% of over 250 Zacks industries, which may impact stock performance [8] - Southern Co., another company in the same industry, is expected to report quarterly earnings of $0.51 per share, reflecting a year-over-year decline of 20.3% [9]

Financial Performance - Entergy reported Q4 2024 earnings of $286 million, or $0.65 per share, down from $988 million, or $2.32 per share in Q4 2023[7]. - For the full year 2024, Entergy's earnings were $1,056 million, or $2.45 per share, compared to $2,357 million, or $5.55 per share in 2023[8]. - The company reported a loss of $(771 million), or $(1.79) per share, for Parent & Other in 2024, compared to a loss of $(151 million), or $(0.35) per share in 2023[15]. - Entergy's consolidated earnings for Q4 2024 were $286 million, a decrease of $701 million compared to Q4 2023, while full-year earnings were $1,056 million, down $1,301 million year-over-year[41]. - The diluted earnings per share (EPS) for consolidated results in Q4 2024 was $0.65, down from $2.32 in Q4 2023, while the full-year EPS was $2.45, a decrease from $5.55 in 2023[41]. - Consolidated net income for Q4 2024 was $287,163, compared to $987,603 in Q4 2023, indicating a significant decrease of about 70.1%[77][78]. - Consolidated net income for 2024 was $1,061,184, a decrease of 55% compared to $2,362,310 in 2023, reflecting a variance of $(1,301,126)[83]. Adjusted Earnings - Adjusted earnings for 2024 were $1,577 million, or $3.65 per share, an increase from $1,438 million, or $3.39 per share in 2023[8]. - Adjusted earnings for the utility segment in Q4 2024 were $426 million, an increase of 183 million from Q4 2023, and for the full year, adjusted earnings were $2,115 million, up 220 million from 2023[41]. - The adjusted earnings per share for the consolidated entity in Q4 2024 was $0.66, compared to $2.32 in Q4 2023, reflecting a significant decrease[50]. - Full year 2024 adjusted earnings per share for the consolidated entity was $3.65, down from $5.55 in 2023, indicating a decline of 34.2%[50]. - Adjusted earnings for Q4 2024 were $1,577 million, an increase from $1,438 million in Q4 2023, with an adjusted ROE of 10.6%[70]. Revenue and Sales - Total retail sales increased by 8.0% in Q4 2024 compared to Q4 2023, with industrial sales up 14.8% and residential sales down 0.4%[61]. - The full-year weather-adjusted retail sales increased by 3.7%, driven by an 8.1% increase in industrial volume[62]. - Total operating revenues for Q4 2024 reached $2,742,305, a slight increase from $2,724,805 in Q4 2023, representing a growth of approximately 0.64%[77][78]. - Consolidated operating revenues for Entergy Corporation reached $12,147,412 thousand, with electric revenues contributing $11,842,454 thousand, and natural gas revenues at $180,490 thousand[80]. Operating Expenses and Cash Flow - Total operating expenses for Q4 2024 were $2,072,690, up from $2,468,248 in Q4 2023, marking an increase of approximately 8.5%[77][78]. - The increase in operating cash flow was primarily due to lower fuel and purchased power payments and customer advances for construction[47]. - Net cash flow provided by operating activities increased to $4,488,510 in 2024, up by 4.5% from $4,294,328 in 2023, showing a variance of $194,182[83]. - Net cash flow provided by operating activities increased to $1,379,682 thousand, up by $316,347 thousand from the previous year[81]. Debt and Capitalization - Total debt rose to $29.034 billion in 2024, an increase of $2.699 billion from 2023[64]. - The company executed a two-for-one forward stock split effective December 13, 2024, impacting all periods presented[76]. - The company has a total capitalization of $44,438 million, with a total debt to total capitalization ratio of 65%[71]. - Long-term debt rose to $26,613,505,000 in 2024, compared to $23,008,839,000 in 2023, indicating an increase of about 15%[73][75]. - Proceeds from the issuance of long-term debt significantly increased to $7,898,968 in 2024, up by 84.5% from $4,273,297 in 2023, with a variance of $3,625,671[83]. Regulatory and Environmental Initiatives - Entergy was recognized in the Dow Jones Sustainability Index for the 23rd consecutive year and named one of America's most responsible companies by Newsweek[4]. - The company is focused on enhancing its grid resilience and innovation partnerships, aligning with regulatory and environmental goals[71]. - Entergy's future outlook includes expectations for industrial load growth and ongoing climate transition plans, although specific numerical guidance was not provided in the release[34]. Miscellaneous - Entergy's estimated weather impact on earnings was a decrease of $25 million for the full year 2024 compared to 2023[5]. - The company recorded a $9 million regulatory liability adjustment in Q4 2024 related to the Louisiana state income tax rate change[54]. - The company reported a pension settlement charge of $319,675 in 2024, which was not present in 2023, indicating a new financial obligation[83].

Results in top half of guidance range for 9th consecutive year, company raises outlooks NEW ORLEANS, Feb. 18, 2025 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) reported fourth quarter 2024 earnings per share of 65 cents on an as-reported basis and 66 cents on an adjusted (non-GAAP) basis. For the full year, the company reported 2024 earnings per share of $2.45 on an as-reported basis and $3.65 on an adjusted basis. "2024 was a transformational year for Entergy," said Drew Marsh, Entergy Chair and Chief E ...

Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Entergy (ETR) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Utilities peers, we might be able to answer that question.Entergy is one of 104 companies in the Utilities group. The Utilities group currently sits at #8 within th ...

NEW ORLEANS, Feb. 12, 2025 /PRNewswire/ -- Entergy will report its fourth-quarter and full-year 2024 financial results before the market opens Tuesday, Feb. 18.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 9 a.m. Central time that day. The webcast may be accessed by visiting Entergy's website at investors.entergy.com or by dialing 888 ...