Entergy (ETR) Q3 2024 earnings summary

Executive summary

• Q3 2024 adjusted EPS was $2.99, with narrowed 2024 guidance to $7.15–$7.35 and a two-for-one stock split and 6% dividend increase announced; long-term EPS outlooks raised, supported by a $7B capital plan increase and robust industrial sales growth.

• Major new customer in Louisiana and strong demand for renewables and clean energy products are driving incremental capital investment and higher sales growth.

• Net income for Q3 2024 was $644.9M–$645M, down from $666.8M–$667M in Q3 2023, reflecting lower revenues, regulatory settlements, and one-time items.

• Board approved a 6% dividend increase and a two-for-one stock split, with trading on a split-adjusted basis starting December 13, 2024.

• Entergy continues to invest heavily in renewables, grid resilience, and new generation, with over $25B in capital investments planned for 2025–2027.

Financial highlights

• Q3 2024 adjusted EPS was $2.99, down from $3.27 in Q3 2023; YTD adjusted EPS reached $5.99.

• Q3 2024 consolidated net income was $644.9M–$645M; operating cash flow for Q3 2024 was $1.56B, up from $1.41B in Q3 2023.

• Utility segment Q3 2024 earnings were $787M, up from $752M as-reported in Q3 2023; Parent & Other segment loss increased to $142M.

• Q3 2024 operating revenues were $3.39B, down from $3.60B in Q3 2023; gross margin improved to 33.2% from 31.8% year-over-year.

• Q3 2024 cash and equivalents at period end were $1.41B.

Outlook and guidance

• 2024 adjusted EPS guidance narrowed to $7.15–$7.35 (pre-split), with long-term EPS growth targets raised for 2025–2028 and a 6% annual dividend growth target.

• Capital plan increased by $7B for 2024–2028, supporting higher industrial sales and renewables demand; over $25B in utility capital investments planned for 2025–2027.

• Entergy expects to issue $4.4B in equity through 2028, with $1.4B already contracted under forward sale agreements.

• Credit metrics and ratings remain strong, with sufficient equity market capacity to meet future needs.

• Regulatory settlements and formula rate plan extensions provide revenue visibility, but ongoing rate cases and reviews may impact future earnings.