Electric utility Entergy Corp. (ETR: Quote) Tuesday said it expects to report significantly higher earnings in its fourth quarter, above analysts’ estimates. The company also affirmed operational earnings guidance for 2013, adding that it now sees in the lower half of the range due to updated pension and post-retirement cost estimates.
For the quarter, the company projects as-reported earnings of approximately $1.65 per share and operational earnings of approximately $1.71 per share. This is in comparison to last year’s as-reported earnings of $0.87 per share and operational earnings of $0.94 per share, respectively.
On average, 11 analysts polled by Thomson Reuters expect the company to earn $0.96 per share for the quarter. Such estimates typically exclude special items.
The special items in both quarters reflected expenses arising out of the proposed spin-off and merger of Entergy’s electric transmission business with ITC Holdings Corp.
The company attributed the significant increase in projected earnings to higher results at Utility and Parent & Other, which was partially offset by lower earnings at Entergy Wholesale Commodities.
Entergy will report fourth-quarter earnings results before the market opens on February 8.
Further, the company affirmed its previously issued 2013 operational earnings guidance to be in the range of $4.60 to $5.40 per share. Entergy noted it currently expects to be in the lower half of the operational guidance range due to updated pension and post-retirement cost estimates, which included an approximate 75 basis point decrease in the discount rate assumption.
Analysts project earnings of $5.06 per share for fiscal 2013.
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by RTT Staff Writer
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