Core Viewpoint - Entergy Corporation has announced a registered underwritten offering of $1.3 billion of its common stock, with the expectation that shares will be borrowed by forward counterparties and sold to underwriters [1][2]. Group 1: Offering Details - The offering involves forward sale agreements with Morgan Stanley, Bank of America, JPMorgan, and Mizuho, where Entergy will issue and sell $1.3 billion of shares at an initial forward sale price equal to the underwriters' purchase price [2]. - Underwriters will have a 30-day option to purchase an additional $195 million of shares to cover any overallotments [2]. - Settlement of the forward sale agreements is expected to occur on or prior to September 30, 2026, with Entergy having the option for cash or net share settlement [3]. Group 2: Use of Proceeds - If Entergy opts for physical settlement of the forward sale agreements, the net proceeds are expected to be used for general corporate purposes, including repayment of commercial paper and outstanding loans [4]. Group 3: Company Overview - Entergy Corporation is an integrated energy company involved in electric power production, transmission, and retail distribution, with a generating capacity of approximately 24,000 megawatts and serving around 3 million utility customers across Arkansas, Louisiana, Mississippi, and Texas [7].

Economic Overview - The University of Michigan's Consumer Sentiment Index for mid-March dropped to 57.9, significantly below the consensus estimate of 63.2 and the final reading of 64.7 in February, indicating a decline in consumer confidence [4] - The short-term inflation outlook increased to 4.9% in March from 4.3% in February, the highest since November 2022, while the long-term inflation outlook rose to 3.9% from 3.4%, marking the highest since February 1991 [5] Investment Strategy - Investment in low-beta high-yielding stocks is recommended as a strategy to safeguard portfolios during uncertain market conditions, with the potential for upside if markets recover [6][8] - The utility sector is highlighted for its stability and consistent demand, making it a favorable choice for income-oriented investors [7][8] Company Highlights Ameren Corp. (AEE) - Ameren plans to invest up to $26.3 billion from 2025 to 2029 to enhance customer reliability and transition to cleaner energy sources [11][12] - Expected revenue and earnings growth rates for the current year are 6% and 6.7%, respectively, with a current dividend yield of 2.90% [14] Atmos Energy Corp. (ATO) - Atmos Energy benefits from rising demand for natural gas and has a long-term investment plan to improve pipeline reliability [15] - Expected revenue and earnings growth rates for the current year are 18.2% and 5.1%, respectively, with a current dividend yield of 2.37% [17] American Water Works Co. Inc. (AWK) - American Water Works is expanding through acquisitions and new water rates, with pending acquisitions expected to add 24,200 customers [21] - Expected revenue and earnings growth rates for the current year are 1.1% and 5.9%, respectively, with a current dividend yield of 2.15% [22] Entergy Corp. (ETR) - Entergy plans to invest $37 billion from 2025 to 2028 to modernize its infrastructure and expand renewable capacity [23] - Expected revenue and earnings growth rates for the current year are 5.5% and 6.3%, respectively, with a current dividend yield of 2.90% [25] NiSource Inc. (NI) - NiSource expects to invest $19.4 billion from 2025 to 2029 to modernize infrastructure and aims to retire all coal-generating sources by 2028 [26][27] - Expected revenue and earnings growth rates for the current year are 11.1% and 9.1%, respectively, with a current dividend yield of 2.90% [28]

Group 1 - The article emphasizes the importance of identifying safe private company corporate bonds that are traded on the exchange [1] - It highlights the features of the investment group Trade With Beta, which includes frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of over 1200 equities, IPO previews, hedging strategies, and an actively managed portfolio [1] - The article mentions that common equity is viewed as a riskier investment compared to corporate bonds [1] Group 2 - The article does not provide specific investment recommendations or advice, indicating that past performance is not a guarantee of future results [2] - It clarifies that the views expressed may not reflect those of Seeking Alpha as a whole, and that the analysts involved may not be licensed or certified [2]

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]

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 ...

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 ...