Why Is Entergy (ETR) Down 7% Since Last Earnings Report?

It has been about a month since the last earnings report for Entergy (ETR). Shares have lost about 7% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Entergy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Industrial Demand Surge & Retail Sales Growth Drive ETR's Q1 Earnings

Entergy Corporation reported first-quarter 2026 earnings of 86 cents per share, which missed the Zacks Consensus Estimate of 89 cents by 3.2%. However, the bottom line increased 4.9% from the year-ago quarter’s figure of 82 cents.

ETR’s Total Revenues

Revenues climbed 12% year over year to $3.19 billion and topped the consensus mark of $3.01 billion by 6.1%.

Operationally, demand remained firm. Weather-adjusted retail sales increased 6.0%, led by a 14.9% jump in industrial volume, reflecting higher sales to data center, primary metals and transportation customers.

Entergy’s Segmental Performance

ETR’s Utility business delivered $1.17 per share in earnings, up from $1.11 in the prior-year quarter, supported by the net effect of regulatory actions across operating companies and return on construction work in progress for certain utility plant investments.

Parent & Other remained a drag. The segment posted an adjusted loss of 31 cents per share compared with a 29-cent loss a year ago, with higher interest expense cited as a key headwind. Results also included an $18 million pre-tax non-cash impairment charge related to the expected sale of a non-utility business interest in the Independence power plant, which was excluded from adjusted earnings.

Highlights of ETR’s Q1 Release

Despite the revenue upside and higher adjusted earnings, Entergy’s quarter fell short of expectations as financing and non-fuel costs weighed on per-share results. Interest expense increased year over year, reflecting higher debt balances and rising interest rates, and the company also cited higher depreciation and amortization tied to higher plant in service and rate-related changes.

Total retail sales rose 4.5% year over year and weather-adjusted growth was stronger at 6.0%, as industrial demand more than offset softer residential and commercial usage.

Entergy’s Financial Highlights

As of March 31, 2026, Entergy had cash and cash equivalents of $3.57 billion compared with $1.93 billion as of Dec. 31, 2025.

Long-term debt totaled $31.15 billion compared with $27.9 billion as of Dec. 31, 2025.

Entergy’s cash generation strengthened in the quarter. Net cash provided by operating activities totaled $829 million, up from $536 million a year ago.

ETR Affirms 2026 View, Raises Longer-Term Outlooks

ETR reaffirmed 2026 adjusted earnings guidance of $4.25-$4.45 per share. The company also updated longer-term targets, lifting its adjusted earnings outlooks to $4.90-$5.20 for 2027, $5.55-$5.85 for 2028 and $6.25-$6.55 for 2029. The Zacks Consensus Estimate for 2026 earnings is pinned at $4.40 per share, which is higher than the company’s guided range.

The company highlighted very strong first-quarter retail sales growth fueled by roughly 15% industrial growth and noted it is updating its capital plan to serve rising customer demand, while also pointing to a strong credit metric outlook.

 

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

VGM Scores

Currently, Entergy has a average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision looks promising. Notably, Entergy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Entergy is part of the Zacks Utility - Electric Power industry. Over the past month, Edison International (EIX), a stock from the same industry, has gained 1.1%. The company reported its results for the quarter ended March 2026 more than a month ago.

Edison International reported revenues of $4.1 billion in the last reported quarter, representing a year-over-year change of +7.7%. EPS of $1.42 for the same period compares with $1.37 a year ago.

Edison International is expected to post earnings of $1.05 per share for the current quarter, representing a year-over-year change of +8.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +6.7%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Edison International. Also, the stock has a VGM Score of C.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research