Q3 2023 Earnings Summary
Reported on Nov 1, 2023 (Before Market Open)
Pre-Earnings Price$47.80Last close (Oct 31, 2023)
Post-Earnings Price$47.97Open (Nov 1, 2023)
Price Change
$0.17(+0.36%)
- Strong industrial sales growth and robust customer pipeline support future earnings growth. The company continues to see a strong pipeline of new and expanding industrial customers, with no change to their projections for industrial sales growth going forward. ,
- Affirmation of 6%-8% EPS growth through 2026, with expectations of continued rate base growth. Entergy reaffirms its 6%-8% EPS CAGR through 2026, and expects rate base to grow consistently with capital investments to support customers.
- Competitiveness in renewable energy development positions the company well for future opportunities. The company has developed capabilities to be competitive in renewable RFPs, particularly in solar self-development, and is planning to support customer growth and demand for clean energy.
- Bear case for Entergy Corporation (ETR):*
- Prolonged uncertainty due to unresolved SERI litigation: The settlement with Louisiana and New Orleans remains unresolved. If no settlement is reached, the fully litigated process at FERC could take over 2 years, leading to extended uncertainty and potential financial exposure for Entergy.
- Delayed proceeds from gas distribution business sale: The sale of Entergy's gas distribution business is expected to close in Q3 2025, approximately two years away, due to lengthy regulatory approval processes involving multiple jurisdictions and the buyer's need to establish back-office operations. This delay could postpone the realization of strategic benefits and proceeds.
Research analysts covering ENTERGY CORP /DE/.