Entergy (NYSE:ETR) Issues Earnings Results

Key Points

• Entergy beat earnings expectations, reporting quarterly EPS of $1.98 versus the $1.73 analyst consensus. The company posted a 13.40% net margin and 10.53% return on equity.
• The company increased its quarterly dividend from $0.64 to $0.68 per share, implying an annualized payout of $2.72 and a 2.5% yield.
• Analysts remain broadly positive: 20 rate Entergy a Buy and two rate it a Hold, producing a consensus “Moderate Buy” rating and a $121.25 price target.

Entergy (NYSE:ETR - Get Free Report) released its quarterly earnings results on Monday. The utilities provider reported $1.98 EPS for the quarter, beating analysts' consensus estimates of $1.73 by $0.25, Zacks reports. Entergy had a net margin of 13.40% and a return on equity of 10.53%.

Entergy Price Performance

ETR opened at $109.93 on Monday. The company has a quick ratio of 0.70, a current ratio of 0.91 and a debt-to-equity ratio of 1.73. Entergy has a 12 month low of $90.87 and a 12 month high of $118.44. The company has a fifty day simple moving average of $104.36 and a 200 day simple moving average of $107.30. The stock has a market cap of $51.30 billion, a P/E ratio of 28.19, a P/E/G ratio of 2.46 and a beta of 0.46.

Entergy Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Friday, November 13th will be issued a $0.68 dividend. This is a positive change from Entergy's previous quarterly dividend of $0.64. The ex-dividend date of this dividend is Friday, November 13th. This represents a $2.72 annualized dividend and a dividend yield of 2.5%. Entergy's dividend payout ratio (DPR) is presently 65.64%.

Insider Transactions at Entergy

In other Entergy news, insider Laura Landreaux sold 5,600 shares of the stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $106.20, for a total value of $594,720.00. Following the completion of the sale, the insider directly owned 22,589 shares in the company, valued at $2,398,951.80. This represents a 19.87% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Ralph Lewis Ropp purchased 1,000 shares of the company's stock in a transaction dated Thursday, August 6th. The shares were acquired at an average cost of $106.08 per share, for a total transaction of $106,080.00. Following the transaction, the director owned 3,423 shares of the company's stock, valued at $363,111.84. This trade represents a 41.27% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.21% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the stock. HSBC assumed coverage on shares of Entergy in a research note on Thursday, October 22nd. They issued a "buy" rating and a $123.50 target price on the stock. UBS Group lifted their target price on Entergy from $129.00 to $138.00 and gave the company a "buy" rating in a research note on Monday, July 6th. Jefferies Financial Group cut their target price on shares of Entergy from $133.00 to $130.00 and set a "buy" rating on the stock in a research report on Tuesday, October 20th. LADENBURG THALM/SH SH lowered their price target on shares of Entergy from $120.50 to $113.50 and set a "buy" rating for the company in a research report on Monday, October 12th. Finally, Barclays reissued an "overweight" rating and set a $115.00 price target (down from $128.00) on shares of Entergy in a research note on Monday, October 19th. Twenty research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $121.25.

Entergy Company Profile

Entergy Corporation is an integrated energy company that operates as a regulated electric utility. Through its operating companies, the company generates, transmits and distributes electricity to residential, commercial, industrial and governmental customers. Its generation portfolio includes nuclear, natural gas, renewable and other power resources, while its transmission and distribution networks deliver electricity across its service territories.

Entergy serves customers in Arkansas, Louisiana, Mississippi and Texas, including the New Orleans area through Entergy New Orleans.

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