Entergy’s Q3 2025 Earnings: What to Expect

Core Viewpoint - Entergy Corporation is experiencing mixed expectations regarding its financial performance, with analysts projecting a decline in third-quarter profits but an overall positive outlook for the current fiscal year [2][3]. Company Overview - Entergy Corporation, based in New Orleans, Louisiana, provides electric power to approximately 3 million customers across Arkansas, Louisiana, Mississippi, and Texas through its utility subsidiaries [1]. - The company operates a diverse range of generating facilities, including natural gas, nuclear, coal, hydroelectric, oil, and renewables, with a total capacity of about 24,000 megawatts [1]. - Entergy has a market capitalization of $42.73 billion and maintains extensive transmission and distribution networks [1]. Financial Performance - For the third quarter, analysts expect Entergy's profit to decline by 12% year-over-year (YOY) to $1.32 per diluted share [3]. - However, for the current fiscal year, profit is projected to improve by 6.6% annually to $3.89 per diluted share [3]. - Entergy has a strong track record of exceeding consensus bottom-line estimates, having surpassed them in each of the last four quarters [3]. Stock Performance - Entergy's stock has performed well over the past year, gaining 46.6% over the last 52 weeks and 27.5% year-to-date (YTD) [4]. - In comparison, the S&P 500 Index has increased by 13.4% and 13% over the same periods, indicating clear outperformance by Entergy [4]. - The Utilities Select Sector SPDR Fund (XLU) has risen by 14.3% over the past 52 weeks and 21.2% YTD, further highlighting Entergy's strong performance relative to its sector [4]. Recent Results - On July 30, Entergy reported better-than-expected second-quarter results, with total revenue increasing by 12.7% YOY to $3.33 billion, surpassing the expected $3.22 billion [5]. - Adjusted earnings grew 9.4% from the prior year to $1.05 per share, exceeding the expected $0.91 per share [5]. - Following these robust results, Entergy's stock surged by 1.2% on July 30 and an additional 1.3% the following day [5]. Analyst Sentiment - Wall Street analysts maintain a bullish outlook on Entergy, with a consensus rating of "Moderate Buy" among the 19 analysts covering the stock [6]. - The ratings configuration has become more positive, with 13 "Strong Buy" ratings, an increase from 12, alongside six "Holds" [6].