Entergy(US:ETR) ZACKSยท2025-08-29 16:31Core Viewpoint - Entergy Corporation has shown improvement in its Q2 2025 earnings, with a notable increase in revenues and operating income, despite a recent decline in share price compared to the S&P 500 [1][2][3]. Financial Performance - Q2 2025 earnings were reported at $1.05 per share, a 9.4% increase from $0.96 in the same quarter last year, surpassing the Zacks Consensus Estimate of $0.91 [2]. - Revenues for Q2 2025 reached $3.33 billion, exceeding the Zacks Consensus Estimate of $3.22 billion by 3.4%, and reflecting a 12.7% year-over-year increase [3]. - Operating income rose to $837.4 million, marking a 35.6% increase from $617.6 million in the previous year [5]. Segment Performance - The utility segment's earnings improved to $1.34 per share from $1.03 in Q2 2024, while the Parent & Other segment reduced its loss to $0.29 per share from a loss of $0.91 [4]. Operating Expenses and Customer Base - Operating expenses increased to $2.49 billion, a 6.7% rise from $2.34 billion in the prior-year quarter [5]. - As of June 30, 2025, Entergy served 3.04 million retail customers, reflecting a 0.5% increase [5]. Financial Position - Cash and cash equivalents stood at $1.18 billion as of June 30, 2025, up from $0.86 billion at the end of 2024 [6]. - Long-term debt increased to $28.11 billion from $26.61 billion at the end of 2024 [6]. - Cash generated from operating activities in the first half of 2025 was $1.26 billion, compared to $1.03 billion in the same period of 2024 [6]. Guidance and Estimates - Entergy reaffirmed its 2025 financial guidance, expecting adjusted earnings in the range of $3.75 to $3.95 per share [7]. - The current Zacks Consensus Estimate for earnings is $3.89 per share, above the midpoint of the guided range [8]. Market Sentiment - Following the earnings release, there has been a downward trend in earnings estimates for Entergy [9]. - The stock currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [11].