On August 1, 2024, Entergy Corp (ETR, Financial) released its 8-K filing for the second quarter of 2024. Entergy, a holding company with five regulated integrated utilities serving approximately 3 million customers in Arkansas, Louisiana, Mississippi, and Texas, reported earnings per share (EPS) of $0.23 on an as-reported basis and $1.92 on an adjusted basis. This performance exceeded the analyst estimate of $1.71 per share.
Company Overview
Entergy Corp (ETR, Financial) is one of the largest power producers in the United States, with 24 gigawatts of rate-regulated owned and leased power generation capacity. The company has been transitioning its portfolio by retiring and selling its nuclear plants in the Northeast since 2014 and plans to sell its two small gas utilities in Louisiana.
Performance and Challenges
For the second quarter of 2024, Entergy reported as-reported earnings of $49 million, or $0.23 per share, compared to $391 million, or $1.84 per share, in the same period last year. On an adjusted basis, earnings were $411 million, or $1.92 per share, up from $391 million, or $1.84 per share, in the second quarter of 2023. The company faced challenges such as higher operating expenses and interest expenses, which were partially offset by higher retail sales volume and favorable regulatory actions.
Financial Achievements
Entergy's financial achievements this quarter include several key regulatory settlements and approvals:
- Entergy Louisiana (E-LA) reached an agreement to extend and modify the formula rate plan, establish the base FRP rate change for the 2023 test year, and provide customer credits.
- System Energy Resources, Inc. (SERI) reached an agreement to resolve major litigation, subject to approval.
- Entergy Mississippi (E-MS) received approval for its FRP settlement.
- Entergy Texas (E-TX) filed for the construction of two hydrogen-capable power stations and two owned solar facilities.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| As-reported earnings (millions) | $49 | $391 | $(342) |
| Adjusted earnings (millions) | $411 | $391 | $20 |
| As-reported EPS | $0.23 | $1.84 | $(1.61) |
| Adjusted EPS | $1.92 | $1.84 | $0.08 |
Balance Sheet and Cash Flow
Entergy's balance sheet and cash flow statements reflect the company's ongoing investments in infrastructure and regulatory compliance. The company reported higher operating expenses, including other O&M and depreciation, and higher interest expenses. However, these were offset by higher retail sales volume and favorable regulatory actions.
Commentary
"We successfully executed on key operational, customer, and regulatory fronts," said Drew Marsh, Entergy Chair and Chief Executive Officer. "Having achieved several important milestones, we have paved the way to capture the robust growth in front of us and unlock exceptional value for all of our stakeholders."
Analysis
Entergy's performance in Q2 2024 demonstrates its ability to navigate regulatory challenges and achieve financial stability. The company's focus on regulatory settlements and infrastructure investments positions it well for future growth. However, higher operating and interest expenses remain areas to monitor. The company's reaffirmed guidance of $7.05 to $7.35 for adjusted EPS in 2024 indicates confidence in its strategic direction.
For more detailed financial information and analysis, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Entergy Corp for further details.
