Key Takeaways ETR's Earnings ESP of -0.23% suggests a lower chance of an earnings beat.Warmer weather, industrial demand and infrastructure projects likely lifted sales.Higher maintenance costs and outages may have limited quarterly profit growth.Entergy Corporation (ETR) is scheduled to release its third-quarter 2025 earnings on Oct. 29, before market open. The company delivered an earnings surprise of 15.38% in the last reported quarter. Let’s discuss the factors that are likely to be reflected in the upc ...

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum, aiding in identifying securities likely to outperform the market [2] Zacks Style Scores Overview - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A being the highest score indicating better chances of outperforming [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Evaluates a company's financial health and future outlook through projected and historical earnings, sales, and cash flow [4] Momentum Score - Targets stocks with upward or downward price trends, utilizing factors like one-week price change and monthly earnings estimate changes [5] VGM Score - Combines all three Style Scores to provide a comprehensive rating, helping investors find stocks with attractive value, growth potential, and positive momentum [6] Zacks Rank Integration - The Zacks Rank uses earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks averaging a +23.81% annual return since 1988, significantly outperforming the S&P 500 [7] - There are over 800 top-rated stocks available, making it essential to use Style Scores to narrow down choices [8] Stock Selection Strategy - Investors should prioritize stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face downward price pressure [10] Company Spotlight: Constellation Energy Corporation - Constellation Energy Corporation, based in Baltimore, MD, provides electric power, natural gas, and energy management services to 2 million customers [11] - Currently rated 3 (Hold) with a VGM Score of B, it shows potential for growth with an 8.5% year-over-year earnings growth forecast for the current fiscal year [12] - Recent upward revisions in earnings estimates and a +4.1% average earnings surprise position CEG as a strong candidate for growth investors [12]

Financial Data and Key Metrics Changes - The company reported third-quarter GAAP earnings of $0.76 per share, an increase from $0.73 in the same quarter last year [4] - Core earnings for the quarter were $0.83 per share, compared to $0.76 in Q3 2024, and year-to-date core earnings reached $2.02 per share, up 15% from $1.76 in 2024 [4][18] - The company invested $4 billion in capital for regulated utilities in the first nine months of 2025, a 30% increase compared to the previous year [4][22] - The updated guidance for 2025 is raised to a midpoint of $2.53 per share, with a range of $2.50-$2.56 [5][16] Business Line Data and Key Metrics Changes - Distribution business earnings improved by 20% year-to-date due to a $225 million annual rate adjustment in Pennsylvania and higher customer demand [19] - Integrated segment earnings increased by $0.05 per share, or 7%, driven by formula rate investments in transmission systems [19] - Standalone transmission business earnings rose approximately 7%, supported by a strong capital investment program [19] Market Data and Key Metrics Changes - The contracted customer demand from data centers increased by over 30% since the last earnings call, with expectations for FirstEnergy's system peak load to rise by 15 GW by 2035 [7] - The overall sales were 1% higher than last year, remaining flat on a weather-adjusted basis [21] Company Strategy and Development Direction - The company is increasing its 2025 capital investment program by 10% to $5.5 billion, focusing on system reliability and resiliency [5][12] - A long-term integrated resource plan in West Virginia aims to add 70 MW of utility-scale solar and 1.2 GW of natural gas generation by 2031 [9][10] - The company is committed to maintaining affordability for customers, with average bills 19% below in-state peers [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a core earnings compound annual growth rate of 6%-8% through 2029, supported by increased capital investments [16][18] - The company is actively engaging with regulators to address rising consumer energy costs and advocating for changes in capacity auctions [62][80] Other Important Information - The company successfully completed its 2025 financing plan with nearly $6 billion in debt financing, demonstrating a strong credit profile [24] - The company expects an order in the Ohio base rate case in November, followed by a multi-year rate plan filing [25] Q&A Session Summary Question: Discussion on West Virginia generation and capital recovery - Management explained that for build-own-transfer scenarios, capital recovery would occur during construction, with significant earnings coming once the asset is operational [32] Question: Thoughts on increased CapEx opportunities - Management indicated that increased CapEx would support the 6%-8% earnings per share growth outlook, with confidence in achieving the upper end of that range [38][83] Question: Data center pipeline activity - Management confirmed that there is currently about $1 billion of CapEx associated with transmission interconnection requests from large load customers [41] Question: Affordability pressures in New Jersey - Management acknowledged that generation costs are driving bill increases and emphasized efforts to mitigate these impacts for customers [62] Question: Transmission upside and open window outcomes - Management stated that the 30% increase in transmission CapEx is based on incremental work rather than inflation, with a modest amount from pending PJM open window projects included in the plan [66][68]

Financial Data and Key Metrics Changes - Third-quarter GAAP earnings were reported at $0.76 per share, an increase from $0.73 in the same quarter last year [4] - Core earnings for the quarter were $0.83 per share, compared to $0.76 in Q3 2024, with year-to-date core earnings at $2.02 per share, up 15% from $1.76 in 2024 [4][18] - The company invested $4 billion in capital for regulated utilities in the first nine months of 2025, a 30% increase compared to the previous year [4][21] - The 2025 capital investment program was increased by 10% to $5.5 billion [5] Business Line Data and Key Metrics Changes - Distribution business saw a 20% improvement in year-to-date earnings due to a $225 million annual rate adjustment in Pennsylvania and higher customer demand [19] - Integrated segment earnings improved by $0.05 per share, or 7%, primarily from formula rate investments in transmission systems [19] - Standalone transmission business earnings increased approximately 7%, driven by a strong capital investment program [19] Market Data and Key Metrics Changes - Load growth from data centers is expected to increase FirstEnergy's system peak load by 15 gigawatts, nearly 50% from 33.5 gigawatts this year to 48.5 gigawatts by 2035 [6] - Across PJM, peak load projections are forecasted to increase by nearly 48 gigawatts by 2035, representing 30% of the current peak load of 162 gigawatts [6] Company Strategy and Development Direction - The company is focused on customer-focused investments to enhance system reliability and resiliency [5][12] - An integrated resource plan was submitted in West Virginia, outlining recommendations for maintaining affordable and reliable power over the next decade [8] - The company plans to roll out a higher capital expenditure plan for the 2026 through 2030 planning period early next year [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about opportunities ahead, reaffirming a core earnings compound annual growth rate of 6% to 8% [5][16] - The company is advocating for changes in state leadership to address rising customer bills, particularly in deregulated states [14][62] - Management highlighted the importance of maintaining affordability for customers while pursuing significant capital investments [13][16] Other Important Information - The company expects a consolidated return on equity of 10.1%, slightly above the targeted range of 9.5% to 10% [22] - Cash from operations was reported at $2.6 billion, an increase of over $700 million compared to 2024 [23] - The company is preparing to file a multi-year rate plan in Ohio following the expected order in the base rate case [24] Q&A Session Summary Question: Discussion on West Virginia generation and capital recovery - Management explained that for a build-own-transfer scenario, capital recovery would occur during construction, with significant earnings coming once the asset is operational [28][29] Question: Rate case strategy for 2026 - Management indicated that they would follow a similar cadence as previous years, focusing on timely recovery through base rate increases [30][31] Question: Impact of increased CapEx on earnings growth outlook - Management believes the increased CapEx opportunities will solidify their ability to remain within the 6% to 8% earnings per share growth range [33] Question: Data center pipeline and transmission CapEx - Management noted that there is approximately $1 billion of CapEx associated with transmission interconnection requests due to strong data center activity [34][35] Question: Affordability pressures in New Jersey - Management acknowledged that generation costs are driving bill increases and emphasized their efforts to mitigate these impacts [51][52]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share (EPS) of $0.45 on a GAAP basis and $0.50 on a non-GAAP basis for Q3 2025, representing a 60% increase from $0.31 in Q3 2024 [2][14][8] - The company reiterated its full-year 2025 non-GAAP EPS guidance range of $1.75 to $1.77, indicating a 9% growth over 2024 results of $1.62 per share [9][22] Business Line Data and Key Metrics Changes - Throughput in the Houston Electric business increased by 9% year to date, with industrial customer class throughput up over 17% quarter over quarter and over 11% year to date [7][8] - The company filed for interim capital recovery trackers at Houston Electric, with a $15 million annual revenue requirement increase approved and a $55 million increase pending [16] Market Data and Key Metrics Changes - The greater Houston area is experiencing diverse growth drivers, with significant increases in industrial activity, particularly in energy refining, processing, and exports [7][36] - The Port of Houston saw an 18% increase in exports quarter over quarter, contributing to the strong demand for electric services [36] Company Strategy and Development Direction - The company introduced a 10-year financial plan with a capital investment plan of at least $65 billion, focusing on economic development and operational efficiency [4][5] - The recent sale of the Ohio Gas LDC is expected to generate approximately $2.6 billion in gross proceeds, allowing for reinvestment in higher growth jurisdictions, particularly in Texas [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving non-GAAP EPS growth at the mid to high end of the 7% to 9% annual guidance from 2026 through 2028, and 7% to 9% annually through 2035 [9][23] - The company is focused on disciplined capital allocation and enhancing its investment portfolio in Texas, which will represent 70% of its investments post-Ohio sale [19][12] Other Important Information - The company anticipates closing the Ohio Gas LDC transaction in Q4 2026, which will provide additional flexibility for future capital investments [11][19] - The company is targeting a trailing 12 months adjusted FFO-to-debt ratio of 14%, with expectations for improvement through upcoming securitization bonds [21] Q&A Session Summary Question: How is the company viewing balance sheet capacity from the Ohio transaction? - Management indicated that the transaction will reduce operational debt and provide a net benefit of approximately $400 million to the plan [31][32] Question: What sectors are driving the industrial sales growth in Texas? - Management noted strong demand from energy refining, processing, and exports, with significant activity at the Port of Houston contributing to growth [36] Question: Can you provide more details on the asset sale and its impact on earnings? - The sale is expected to be beneficial for financing and earnings, with a reduction in cash lag and plans to reinvest in Texas gas and electric projects [45][46] Question: What is the timeline for the Advanced Metering Infrastructure rollout? - The pilot for the new metering infrastructure is expected to begin in 2026, with broader deployment anticipated in 2027 [56][57] Question: How does the company view the opportunities in mobile generation assets? - Management highlighted strong market conditions for medium-sized units and plans to remarket larger units by early 2027, which could provide cash flow benefits [60][61]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share (EPS) of $0.45 on a GAAP basis and $0.50 on a non-GAAP basis for Q3 2025, representing a 60% increase compared to $0.31 in Q3 2024 [2][7][13]. - The company reiterated its full-year 2025 non-GAAP EPS guidance range of $1.75-$1.77, indicating a 9% growth over 2024 results of $1.62 per share [8][22]. Business Line Data and Key Metrics Changes - Throughput in the Houston Electric business increased by 9% year to date, with industrial customer class throughput up over 17% quarter over quarter and over 11% year to date [6]. - The company filed for interim capital recovery trackers at Houston Electric, with a $15 million annual revenue requirement increase approved and a $55 million increase pending approval [15]. Market Data and Key Metrics Changes - The greater Houston area is experiencing significant growth, with peak load demand forecasted to increase by 10 GW by 2031, representing a nearly 50% increase over the next six years [5]. - The company anticipates that electric load demand will double to approximately 42 GW by the middle of the next decade, supporting a strong investment profile [5]. Company Strategy and Development Direction - The company introduced a 10-year financial plan with a capital investment plan of at least $65 billion, focusing on economic development, operational efficiency, and value for investors [4]. - The recent sale of the Ohio Gas LDC is expected to generate approximately $2.6 billion in gross proceeds, allowing for redeployment into higher growth jurisdictions, particularly in Texas [9][10]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving non-GAAP EPS growth at the mid to high end of the 7%-9% annual growth guidance from 2026 through 2028 and 7%-9% annually through 2035 [6][23]. - The company highlighted the importance of a diverse set of growth drivers in the Houston area, which is not reliant on any single industry [6]. Other Important Information - The company expects to close the Ohio Gas LDC transaction in Q4 2026, with after-tax net cash proceeds of approximately $2.4 billion to be redeployed into capital investments [10][18]. - The company is focused on maintaining a strong balance sheet and has derisked over a billion dollars of equity needs through forward sales [21][22]. Q&A Session Summary Question: Balance sheet capacity from the Ohio transaction - Management indicated that the transaction would improve the FFO-to-debt ratio and allow for additional capital expenditures [29][31]. Question: Local feedback on the Ohio transaction - Management reported positive reception and support from local leadership regarding the transaction [32]. Question: Sales growth in Texas and driving sectors - Management noted strong throughput growth driven by diverse sectors, including data centers and energy refining [35][36]. Question: Data center activity in Indiana - Management expressed optimism about data center opportunities in Indiana, highlighting excess capacity and regulatory support [37][39]. Question: Accretive nature of the Ohio asset sale - Management confirmed that the sale would be beneficial for financing and earnings, with plans to redeploy funds into Texas projects [44][46]. Question: Seller's note and its impact - Management described the seller's note as a straightforward instrument that would support earnings in 2027 [48]. Question: AMI rollout timeline - Management indicated that AMI investments would begin in 2026, with a pilot program planned for that year [54][56]. Question: Mobile generation asset opportunities - Management discussed strong market conditions for medium-sized units and plans to remarket larger units in 2027 [58][60]. Question: Impact of HB 4384 legislation - Management confirmed that the benefits of the legislation are included in the current investment plan, with potential for further enhancements [62].

Core Insights - The U.S. stock market is at a critical inflection point, influenced by a government shutdown and economic uncertainty, while the utility sector is experiencing a resurgence due to AI and data-driven infrastructure [1][2] Utility Sector Performance - The utility sector is witnessing record electricity demand, primarily driven by data centers, which is expected to enhance load growth and top-line growth for major utilities in Q3 [2][6] - U.S. power demand increased by 2.3% year-over-year through September, largely attributed to growth in data center hubs [7] Earnings Outlook - The total earnings for the utility sector are projected to decline by 2.4% despite a revenue growth of 5.8% in Q3 [10] - PG&E Corp is expected to report earnings of 46 cents per share on revenues of $6.55 billion, indicating a year-over-year bottom-line growth of 24.3% and top-line improvement of 10.2% [10] - CenterPoint Energy is anticipated to report earnings of 46 cents per share on revenues of $1.98 billion, suggesting a year-over-year bottom-line growth of 48.4% and top-line improvement of 6.6% [11] Financial Considerations - The utility sector is capital-intensive, and while recent Federal Reserve rate cuts may provide some relief, the cost of debt for funding infrastructure projects remains a critical concern [8][9] - Higher interest expenses may have negatively impacted the sector's bottom line, necessitating close monitoring of how utilities manage their balance sheets and growth funding [9][13] Investment Opportunities - The current environment presents a timely opportunity for ETF investors to evaluate funds positioned to benefit from the utility sector's performance amid electrification and AI expansion [3][14] - ETFs such as Utilities Select Sector SPDR Fund, Vanguard Utilities ETF, and others provide exposure to the sector's long-term growth story while mitigating risks associated with individual companies [14]

Group 1 - Two stocks in the utilities sector, Black Hills Corp and Spire Inc, are identified as potentially overbought based on momentum indicators [1][2] - The Relative Strength Index (RSI) for Black Hills Corp is 72.9, indicating it is overbought, while Spire Inc has an RSI of 75.2, also suggesting overbought conditions [2][6] - Black Hills Corp's stock has increased approximately 10% over the past month, reaching a 52-week high of $65.59, while Spire Inc's stock has gained around 11% in the same period, with a 52-week high of $87.64 [6] Group 2 - Black Hills Corp recently announced a $450 million debt offering, and its shares closed at $65.25 after a 1.1% increase [6] - Mizuho analyst Gabriel Moreen maintained an Outperform rating for Spire Inc and raised its price target from $83 to $93, with shares closing at $87.13 after a 0.3% gain [6]

Core Viewpoint - The National Energy Regulatory Council (NERC) has set the total allowed income cap for AB "Energijos skirstymo operatorius" (ESO) at EUR 433.0 million for 2026, reflecting a 14.4% increase from EUR 378.7 million in 2025, driven by higher investments and lower regulatory differences [5]. Income Cap Summary - The total income cap for ESO's electricity and natural gas distribution services is established at EUR 433.0 million for 2026, which is 14.4% higher than the 2025 cap [5]. - The income cap for electricity distribution services is set at EUR 376.9 million for 2026, a 17.2% increase from EUR 321.6 million in 2025 [3]. - The income cap for natural gas distribution services is set at EUR 56.1 million for 2026, showing a slight decrease of 1.6% from EUR 57.1 million in 2025 [3]. Regulatory Components Summary - The Regulatory Asset Base (RAB) for ESO is projected to be EUR 1,906.5 million in 2026, up 6.2% from EUR 1,794.9 million in 2025 [3]. - The Weighted Average Cost of Capital (WACC) for electricity distribution is slightly reduced to 5.77% in 2026 from 5.82% in 2025, while the WACC for natural gas distribution remains unchanged at 5.6% [3]. - Depreciation and amortization (D&A) for regulatory purposes is expected to increase to EUR 109.5 million for 2026, a 10.0% rise from EUR 99.6 million in 2025 [3]. Factors Influencing Changes - The increase in the income cap is attributed to higher investments in the network as per the 10-year Investment Plan, leading to an increased additional tariff component, return on investment, and depreciation and amortization [6]. - There is a noted decrease in temporary regulatory differences due to a higher return in 2025 [6].

Oct 23, 2025 6:25 AM Eastern Daylight Time CenterPoint Energy reports strong Q3 2025 results; reiterates 2025 and 2026 full year guidance Share HOUSTON--(BUSINESS WIRE)--CenterPoint Energy, Inc. (NYSE: CNP) or "CenterPoint†today reported net income of $293 million, or $0.45 per diluted share on a GAAP basis for the third quarter of 2025, compared to $0.30 per diluted share in the comparable period of 2024. Non-GAAP EPS for the third quarter of 2025 was $0.50, over a 60% increase to the comparable quarter of ...