Domestic-focused, capital-intensive companies in the Zacks Utilities sector are consistent performers and regularly reward their investors with dividends. The consistent dividend payment ability makes the utilities a bond substitute for the investors.Utility operation is capital intensive, as consistent investment is required to upgrade, maintain and replace old pipelines and maintain and expand infrastructure to provide reliable services to an expanding customer base. The utilities raise their revenues fro ...

Core Viewpoint - Entergy has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook for the stock due to rising earnings estimates [2][3][10] Earnings Estimates and Stock Performance - The upgrade reflects an upward trend in earnings estimates, which is a significant factor influencing stock prices [3][6] - Entergy is expected to earn $4.13 per share for the fiscal year ending December 2024, representing a year-over-year increase of 21.8% [8] - Over the past three months, the Zacks Consensus Estimate for Entergy has increased by 23.3% [13] Zacks Rating System - The Zacks Rank system classifies stocks based on earnings estimates, with only the top 5% receiving a 'Strong Buy' rating and the next 15% a 'Buy' rating [9] - The Zacks rating system has a strong track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7] Institutional Investor Influence - Changes in earnings estimates are strongly correlated with stock price movements, particularly due to institutional investors who adjust their valuations based on these estimates [11]

Group 1: Nuclear Energy Market Trends - Nuclear energy stocks are gaining popularity in 2024 as investors seek to capitalize on companies supporting the AI revolution, but the market is becoming saturated with demand from hyperscaler companies [1] - Hyperscaler companies are consuming the excess nuclear energy capacity available from U.S. firms, prompting companies like Constellation Energy to recommission previously mothballed sites [1] Group 2: Small Modular Reactors (SMRs) - New full-size nuclear plants require significant investment, costing tens of billions of dollars and taking over a decade to complete, leading to the emergence of small modular reactors (SMRs) as a faster and cheaper alternative [2] - Currently, there are no operational SMRs in the United States, raising questions about their economic viability [2] Group 3: Low-Carbon Energy Solutions - Energy companies are developing low-carbon solutions by combining natural gas with carbon sequestration technology to meet the carbon reduction goals of hyperscalers [3] - Exxon Mobil plans to utilize low-carbon intensity natural gas and its carbon sequestration technology to capture over 90% of CO2 emissions from data centers [6][7] Group 4: Key Players in the Market - Exxon Mobil has the largest carbon capture and storage network globally, with contracts for 6.7 million tons of carbon sequestration annually, positioning it well for low-carbon energy solutions [8] - GE Vernova, while not a utility, is focusing on natural gas turbine sales for data centers and plans to invest in carbon capture technology in the future [9][10] - Entergy has signed a $10 billion deal with Meta Platforms to build a large data center powered by natural gas, with plans to incorporate hydrogen and carbon capture technology over time [12][13]

Core Viewpoint - PG&E Corporation has appointed Leo P. Denault to its Board of Directors, effective February 19, 2025, bringing extensive utility sector experience to enhance operational and financial performance [1][2]. Group 1: Leadership and Experience - Leo P. Denault served as Chairman and CEO of Entergy Corporation from 2013 to 2022, where he transformed the company into a leading utility with one of the cleanest energy portfolios in the nation [1][2]. - Denault's leadership at Entergy focused on investing in the reliability and resilience of the energy system while maintaining financial stability [2]. - Prior to his role at Entergy, Denault held various positions including Executive Vice President and CFO, and he began his career at Public Service Company of Indiana, later becoming part of Cinergy Corporation and Duke Energy Corporation [3]. Group 2: Contributions and Goals - Denault expressed his commitment to support PG&E's CEO Patti Poppe and her team in providing energy to over 16 million Californians [4]. - His current roles include serving on the board of Huntington Ingalls Industries and as a Senior Advisor to ArcLight, focusing on investments in power and utility infrastructure [5]. Group 3: Educational Background - Denault holds an MBA from Indiana University and a bachelor's degree in economics and accounting from Ball State University [6]. Group 4: Company Overview - PG&E Corporation is a holding company based in Oakland, California, serving 16 million customers across a 70,000-square-mile area in Northern and Central California [7].

Project is expected to result in 500 or more direct new jobs, more than 1,000 indirect jobs and 5,000 construction workers at peak. Expansive technology campus will occupy 4 million square feet on 2,250 acres in Richland Parish. Entergy worked with Meta to address energy needs, and Meta will match its electricity use with 100% clean and renewable energy.RICHLAND PARISH, La., Dec. 4, 2024 /PRNewswire/ -- Today, Meta and Louisiana Economic Development (LED) announced a $10 billion artificial intelligence da ...

NEW ORLEANS, Nov. 1, 2024 /PRNewswire/ -- Entergy Chair and Chief Executive Officer Drew Marsh and members of the senior management team plan to meet with investors during the Edison Electric Institute Financial Conference from Sunday, Nov. 10, to Tuesday, Nov. 12, 2024.Meeting materials will be posted Friday, Nov. 8, to Entergy's Investor Relations website at investors.entergy.com/investors/events-and-presentations.About EntergyEntergy (NYSE: ETR) is a Fortune 500 company that powers life for 3 million cus ...

Financial Performance - Entergy Corporation reported a significant increase in revenue, reaching $3.5 billion for the quarter, representing a 10% year-over-year growth[1]. - The company achieved a net income of $500 million, which is a 15% increase compared to the same quarter last year[1]. - Entergy's net income attributable to the corporation for Q3 2024 was $786.5 million, an increase from $751.6 million in Q3 2023, representing a growth of 4.3%[25]. - Operating revenues for Q3 2024 were $3,370 million, a decrease of 5.3% compared to $3,559 million in Q3 2023[32]. - Consolidated net income for the three months ended September 30, 2024, was $645,754, compared to $669,714 in 2023; for the nine months, net income was $774,022, down from $1,374,026 in 2023[137]. - Consolidated net income for 2024 was $774,022, a decrease of 43.6% compared to $1,374,026 in 2023[142]. - Operating income for the three months ended September 30, 2024, was $1,125,862, a slight decrease from $1,143,383 in 2023; for the nine months, operating income was $1,981,475, down from $2,361,418 in 2023[137]. Customer and Market Growth - Customer growth was noted, with an increase of 2.5% in the number of residential customers, totaling approximately 3 million[1]. - Industrial usage increased due to higher demand from large industrial customers, particularly in the petroleum refining and chlor-alkali industries[28]. - Total retail sales for 2024 were 35,747 GWh, a slight decrease of 0.1% from 35,790 GWh in 2023, with residential sales down 9% and industrial sales up 10%[34]. - Total retail sales increased by 2% to 94,353 GWh in 2024 compared to 92,538 GWh in 2023, driven by industrial demand[59]. Investment and Infrastructure - Entergy expects to invest $20 billion over the next five years to enhance its infrastructure and expand renewable energy capacity[1]. - The company is targeting a 50% reduction in carbon emissions by 2030, aligning with its commitment to achieve net-zero carbon emissions by 2050[1]. - Entergy's capital expenditures for the upcoming year are projected to be approximately $4 billion, primarily focused on grid modernization and renewable projects[1]. - Entergy Corporation expects to issue approximately $4.4 billion of equity through 2028, with about $1.4 billion already contracted under forward sale agreements as of September 30, 2024[88]. - Entergy is planning approximately $25 billion in capital investments from 2025 to 2027, focusing on generation projects, nuclear fleet investments, and transmission improvements[91]. Regulatory and Legal Challenges - Entergy is facing regulatory challenges related to rate cases, which could impact future revenue growth and cost recovery efforts[1]. - Entergy Arkansas committed to forgo recovery of costs related to the 2013 ANO stator incident, leading to a write-off of $78 million in Q3 2023[26]. - Entergy Arkansas recorded a regulatory liability reversal of $92 million in Q3 2024, offsetting reductions in gross revenues from retail one-time bill credits[38]. - Entergy Louisiana recorded expenses of $151 million in Q2 2024 related to the global stipulated settlement agreement[178]. - Entergy Mississippi's formula rate plan for 2024 reflects an earned return on rate base of 6.08%, resulting in a total revenue increase of $64.6 million[182]. Debt and Financing - Interest expense for Entergy increased by $23.3 million in Q3 2024 compared to the previous year, reflecting higher borrowing costs[25]. - The company paid $723,975 in dividends for common stock, an increase from $678,699 in 2023[145]. - Long-term debt, including securitization bonds, rose to $26,563,350 in 2024 from $23,008,839 in 2023[149]. - Net cash flow from financing activities increased by $528 million for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to long-term debt activity providing approximately $2,742 million in 2024 versus $221 million in 2023[122]. Operational Efficiency - Entergy plans to launch a new energy efficiency program aimed at reducing customer energy consumption by 10% over the next three years[1]. - Other operation and maintenance expenses decreased from $743 million in Q3 2023 to $714 million in Q3 2024, primarily due to lower power delivery and compensation costs[35]. - The effective income tax rate for Q3 2024 was 25%, compared to 25.3% in Q3 2023, primarily due to state income tax accruals[46][47]. Future Projects and Developments - Entergy Arkansas expects the Driver Solar facility, a 250 MW project, to commence commercial operation by the end of 2024, with a substantial completion payment of approximately $100 million expected[97]. - Entergy Louisiana's application for an alternative to the RFP process to acquire up to 3 GW of solar resources was approved by the LPSC in May 2024[98]. - Entergy Texas filed an application for the Legend Power Station (754 MW) and Lone Star Power Station (453 MW), with estimated costs of $1.46 billion and $735.3 million respectively, both expected to be in service by mid-2028[105]. Miscellaneous - The Board declared a dividend of $1.20 per share at its October 2024 meeting[114]. - The company expects to receive $127 million from the U.S. Treasury related to the Vermont Yankee damages case in the fourth quarter of 2024[158]. - The balance of retained earnings as of September 30, 2024, was $11.985 billion, compared to $11.192 billion as of September 30, 2023, indicating an increase of approximately 7.1%[153][155].

As of Nov. 1, 2024, two stocks in the utilities sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benz ...

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].

Entergy Corporation (ETR) reported third-quarter 2024 earnings of $2.99 per share, which beat the Zacks Consensus Estimate of $2.91 per share by 2.8%. However, earnings declined 4.8% from the year-ago figure of $3.14 per share.The year-over-year deterioration can be attributed to lower revenues and interest expenses incurred in the third quarter compared with the year-ago quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.ETR’s Q3 RevenuesEntergy reported revenues of $3.39 bill ...