Results: Entergy Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

As you might know, Entergy Corporation (NYSE:ETR) just kicked off its latest second-quarter results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 5.0% to hit US$3.3b. Entergy reported statutory earnings per share (EPS) US$1.05, which was a notable 14% above what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, Entergy's 14 analysts are now forecasting revenues of US$12.9b in 2025. This would be a credible 4.8% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be US$3.96, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$13.0b and earnings per share (EPS) of US$3.97 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Entergy

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$92.13. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Entergy at US$106 per share, while the most bearish prices it at US$65.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Entergy's past performance and to peers in the same industry. The analysts are definitely expecting Entergy's growth to accelerate, with the forecast 9.9% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Entergy to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$92.13, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Entergy. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Entergy analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Entergy has 2 warning signs (and 1 which is concerning) we think you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.