Entergy on Wednesday reported second-quarter earnings of $361 million ($1.79/share), bettering 2019’s second-quarter performance of $236 million ($1.22/share).
When adjusted for nonrecurring items, such as the removal of Entergy Wholesale Commodities when it exits the merchant power business in 2022, earnings came in at $276 million ($1.37/share). (See Entergy Celebrates Sale of Final EWC Nuke.) Entergy’s results beat projections by Zacks Investment Research’s survey of analysts, who expected average earnings of $1.23/share.
“We delivered another strong quarter and remain on track to achieve our full-year objectives. Sales were better than expected; we’re on pace to achieve our cost savings target for the year; and our capital plan is unchanged,” Entergy CEO Leo Denault said in a press release.
The New Orleans-based company is affirming its full-year guidance range of $5.45 to $5.75/share, pinning some of the projection on the petrochemical-heavy regional economy.
“While we have seen some slowdown in industrial activity, our industrial base is among the most economically advantaged in the world,” Denault told financial analysts during a conference call. “We expect it to lead the region’s recovery in their respective industries.”
Executives said Entergy could take an earnings hit of 15 to 20 cents/share following a FERC administrative law judge’s July decision recommending the commission return to ratepayers $147.3 million related to nuclear decommissioning tax deductions for the Grand Gulf Nuclear Station in Mississippi (ER18-1182).
The company’s stock price gained $1.45 during the day, closing at $104.12. The stock price is still down 11.7% for the year, having begun 2020 at $117.93.
