Entergy Flags 5-10 Cent Y/Y O&M Jump in Q3, Pressuring Margins
ETR sits 27% above its 52-week low of $86.4 on light trading volume (0.3× avg).
Summary
On the Q2 earnings call, Entergy guided for Q3 other O&M to rise 5-10 cents per share year-over-year, a headwind that compounds the penny EPS miss reported earlier today. The company also highlighted $7 billion in customer bill benefits from agreements signed to date, but the near-term cost pressure is the actionable signal. This follows the $2.175 billion equity raise closed in May and the $672 million forward settlement in June, suggesting ongoing capital needs. The O&M increase, while modest in absolute terms, signals expense creep that could weigh on upcoming quarterly results.
At the time of this announcement, ETR was trading at $110.07 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $50.4B. The 52-week trading range was $86.40 to $118.45. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.