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Entergy Corp. (ETR)
NYSE:ETR

Entergy (ETR) AI Stock Analysis

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Entergy

(NYSE:ETR)

Rating:54Neutral
Price Target:
$89.00
â–²(8.91%Upside)
Entergy's overall stock score reflects a stable financial performance with strong profitability and operational efficiency. However, high leverage and negative free cash flow are concerns. The technical indicators suggest a bearish trend, and the valuation appears stretched. Positive earnings call highlights and strategic corporate events provide some optimism for future growth.
Positive Factors
Financial Performance
Entergy Corp. reported earnings per share that exceeded consensus estimates, indicating stronger financial performance.
Growth and Expansion
Entergy Corp. continues to see strong interest from industrial customers, with recent announcements related to new large facilities from companies like Hyundai, CF Industries, and Woodside.
Investor Sentiment
Analyst reiterates an Outperform rating and views the stock's current price as an attractive buying opportunity.
Negative Factors
Retail Sales
Entergy underperformed peers due to investor positioning and a modest revision to retail sales.
Stock Performance
Entergy Corp. underperformed peers due to investor positioning and a lack of positive incremental data points.

Entergy (ETR) vs. SPDR S&P 500 ETF (SPY)

Entergy Business Overview & Revenue Model

Company DescriptionEntergy Corporation, together with its subsidiaries, engages in the production and retail distribution of electricity in the United States. The company operates in two segments, Utility and Entergy Wholesale Commodities. The Utility segment generates, transmits, distributes, and sells electric power in portions of Arkansas, Louisiana, Mississippi, and Texas, including the City of New Orleans; and distributes natural gas. The Entergy Wholesale Commodities segment engages in the ownership, operation, and decommissioning of nuclear power plants; and ownership of interests in non-nuclear power plants that sell electric power to wholesale customers, as well as provides services to other nuclear power plant owners. It generates electricity through gas, nuclear, coal, hydro, and solar power sources. The company sells energy to retail power providers, utilities, electric power co-operatives, power trading organizations, and other power generation companies. The company's power plants have approximately 26,000 megawatts (MW) of electric generating capacity, which include 6,000 MW of nuclear power. It delivers electricity to 3 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. The company was founded in 1913 and is headquartered in New Orleans, Louisiana.
How the Company Makes MoneyEntergy makes money primarily through its utility operations, which involve the generation, transmission, and distribution of electricity to residential, commercial, industrial, and governmental customers. The company operates under regulated rate structures, which allow it to recover expenses and earn a return on invested capital for its utility services. Additionally, Entergy generates revenue from its nuclear power plants, selling electricity to wholesale customers and other utilities. The company's earnings are influenced by factors such as regulatory decisions, fuel costs, weather conditions, and economic activity in its service areas. Entergy also participates in partnerships and joint ventures that can contribute to its revenue streams, as well as investments in infrastructure and technology to enhance its operational efficiency and service reliability.

Entergy Key Performance Indicators (KPIs)

Any
Any
GWh Sold
GWh Sold
Total number of GWh sold to retail and wholesale customers
Chart InsightsEntergy's industrial segment is driving robust growth, with a notable 9.3% increase in sales, aligning with major customer investments and infrastructure progress. This momentum is supported by strategic projects like the Orange County Advanced Power Station. However, the wholesale segment faces challenges, evidenced by a sharp decline in recent quarters. Management remains optimistic, projecting over 8% EPS growth, but acknowledges risks from tariffs and rising costs. The company's focus on operational efficiency and regulatory engagement is crucial to navigating these challenges and capitalizing on growth opportunities.
Data provided by:Main Street Data

Entergy Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: -3.96%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
Entergy's earnings call highlighted a strong start to 2025 with robust financial performance, major customer investments, and positive legislative developments. However, challenges such as potential tariff impacts and higher operating costs were noted, balanced by proactive measures to manage volatility and equity needs.
Q1-2025 Updates
Positive Updates
Strong Start to 2025
Entergy reported adjusted earnings per share of $0.82 for the first quarter, keeping on track for 2025 guidance and maintaining a greater than 8% adjusted EPS compound annual growth rate.
Major Industrial Investments
Three significant customer investments were announced: $5.8 billion by Hyundai Motor Group, $4 billion by CF Industries, and $17.5 billion by Woodside, all expected to come online between 2028 and 2029.
Robust Sales Growth
Weather-adjusted retail sales growth was strong at 5.2% for the quarter, with industrial sales increasing by 9.3%.
Progress on Infrastructure Projects
The Orange County Advanced Power Station is 70% complete and on schedule; other facilities and upgrades are also progressing well.
Positive Legislative Developments
New laws in Arkansas and Texas support economic growth, infrastructure investments, and faster storm recovery.
Negative Updates
Potential Tariff Impacts
Current tariffs could impact capital expenditures by approximately 1% of the $37 billion 4-year capital plan, primarily affecting projects in 2027 and 2028.
Higher Operating Costs
The quarter was affected by higher interest expenses and depreciation due to ongoing investments.
Equity Needs and Market Volatility
Entergy executed a $1.5 billion block equity forward to manage volatility, with equity needs extending into 2027.
Company Guidance
During Entergy Corporation's first quarter earnings call, management provided guidance for 2025, highlighting an adjusted earnings per share (EPS) of $0.82 for the quarter, keeping the company on track for its guidance. Entergy aims to achieve a greater than 8% adjusted EPS compound annual growth rate over the outlook period. The company reported strong weather-adjusted retail sales growth of 5.2%, driven primarily by a 9.3% increase in industrial sales. Entergy has also detailed significant customer growth opportunities, including substantial investments from Hyundai Motor Group, CF Industries, and Woodside LNG, expected to come online by 2028-2029. Entergy’s capital plan execution continues with projects like the Orange County Advanced Power Station and the Delta Blues advanced power station, both remaining on schedule and on budget. The company reaffirmed its adjusted EPS guidance and outlooks, maintaining confidence in its ability to deliver successful outcomes through strategic customer growth, operational efficiency, and regulatory engagement.

Entergy Financial Statement Overview

Summary
Entergy's strong profitability and operational efficiency are supported by effective cost management and robust margins. However, challenges such as inconsistent revenue growth, high leverage, and negative free cash flow present financial risks.
Income Statement
77
Positive
Entergy shows a strong TTM gross profit margin of 44.87% and an improving net profit margin of 11.27%, indicating effective cost management and profitability. The EBIT margin for TTM is solid at 25.67%, with EBITDA margin at 44.74%, reflecting operational efficiency. However, revenue growth has been inconsistent, with a slight decline in recent years, which could hinder long-term performance.
Balance Sheet
70
Positive
The company maintains a high debt-to-equity ratio of 2.04, signaling significant leverage which could pose financial risks. The TTM return on equity is a robust 8.85%, demonstrating effective use of equity capital. However, the equity ratio of 22.79% suggests a heavy reliance on debt funding, which may impact financial stability.
Cash Flow
65
Positive
Entergy's operating cash flow to net income ratio stands at 3.35 for TTM, indicating strong cash generation relative to net earnings. However, the negative free cash flow and declining free cash flow growth rate could limit opportunities for reinvestment and necessitate reliance on external financing.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue11.93B11.88B12.15B13.76B11.74B10.11B
Gross Profit5.36B5.74B5.33B5.28B4.87B4.46B
EBITDA5.49B4.66B4.92B4.16B4.39B4.33B
Net Income1.34B1.06B2.36B1.10B1.12B1.41B
Balance Sheet
Total Assets66.62B64.79B59.70B58.60B59.45B58.24B
Cash, Cash Equivalents and Short-Term Investments1.51B859.70M132.55M224.16M442.56M1.76B
Total Debt30.92B28.92B26.25B26.76B27.08B24.00B
Total Liabilities51.12B49.39B44.74B45.53B47.75B47.28B
Stockholders Equity15.19B15.08B14.66B13.00B11.64B10.93B
Cash Flow
Free Cash Flow-1.91B-1.48B-417.30M-2.70B-4.12B-2.47B
Operating Cash Flow4.50B4.49B4.29B2.59B2.30B2.69B
Investing Cash Flow-6.27B-5.85B-4.63B-5.71B-6.18B-4.77B
Financing Cash Flow1.99B2.09B243.03M2.91B2.56B3.42B

Entergy Technical Analysis

Technical Analysis Sentiment
Negative
Last Price81.72
Price Trends
50DMA
82.61
Negative
100DMA
83.14
Negative
200DMA
77.91
Positive
Market Momentum
MACD
-0.14
Negative
RSI
47.49
Neutral
STOCH
28.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETR, the sentiment is Negative. The current price of 81.72 is below the 20-day moving average (MA) of 82.06, below the 50-day MA of 82.61, and above the 200-day MA of 77.91, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 47.49 is Neutral, neither overbought nor oversold. The STOCH value of 28.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ETR.

Entergy Risk Analysis

Entergy disclosed 42 risk factors in its most recent earnings report. Entergy reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Entergy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
PCPCG
66
Neutral
$29.98B12.548.55%0.72%1.91%-4.40%
WEWEC
64
Neutral
$33.29B20.3612.96%3.42%4.42%11.98%
DTDTE
63
Neutral
$27.21B17.7113.28%3.30%11.16%20.94%
61
Neutral
C$4.83B-11.60-12.25%4.49%11.13%-68.91%
XEXEL
60
Neutral
$39.33B20.1010.26%3.34%-0.44%2.14%
EDED
55
Neutral
$36.14B18.528.33%3.39%8.52%3.91%
ETETR
54
Neutral
$35.20B26.528.96%2.93%-0.84%-37.59%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ETR
Entergy
81.72
30.64
59.98%
ED
Consolidated Edison
99.71
14.26
16.69%
DTE
DTE Energy
131.13
25.69
24.36%
PCG
PG&E
13.64
-3.45
-20.19%
WEC
WEC Energy Group
104.31
28.97
38.45%
XEL
Xcel Energy
67.88
17.49
34.71%

Entergy Corporate Events

M&A TransactionsBusiness Operations and Strategy
Entergy Completes Sale of Gas Distribution Business
Positive
Jul 1, 2025

On July 1, 2025, Entergy completed the sale of its natural gas distribution business to Delta Utilities, backed by Bernhard Capital Partners. The transaction, which involved the sale of Entergy New Orleans and Entergy Louisiana’s gas businesses, received all necessary regulatory approvals and is part of Entergy’s strategic focus on expanding its electric utility operations. This move is expected to enhance Entergy’s ability to invest in a more resilient energy future, while Delta Utilities takes over the management of gas services for approximately 204,000 homes and businesses in Baton Rouge and New Orleans.

The most recent analyst rating on (ETR) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Entergy stock, see the ETR Stock Forecast page.

Private Placements and Financing
Entergy Settles Forward Sale Agreements for $806 Million
Neutral
May 13, 2025

On May 13, 2025, Entergy Corporation settled its obligations under Forward Sale Agreements by delivering 15,560,474 shares of common stock, generating approximately $806 million in cash proceeds. The company still has outstanding forward sale agreements for 30,160,621 shares, which could yield an additional $2.3 billion if settled as of the same date.

The most recent analyst rating on (ETR) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Entergy stock, see the ETR Stock Forecast page.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Entergy Reports Strong Q1 2025 Financial Results
Positive
Apr 29, 2025

On April 29, 2025, Entergy Corporation reported its first quarter 2025 financial results, showing earnings of $361 million, or 82 cents per share, both on an as-reported and adjusted basis. This marks a significant increase from the first quarter of 2024, where earnings were $75 million, or 18 cents per share, as-reported. The company highlighted several business developments, including regulatory approvals for transmission projects in Texas and Louisiana, and the completion of a $1.5 billion common stock offering. Entergy also received an Emergency Response Award for its restoration work following Hurricane Francine. The company reaffirmed its 2025 adjusted earnings per share guidance range of $3.75 to $3.95, reflecting confidence in its operational strategy and stakeholder value delivery.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025