Entergy Reports Third Quarter Earnings

Entergy Corporation reported third quarter 2024 earnings per share of $2.99 on both an as-reported and an adjusted (non-GAAP) basis.

“We achieved outstanding results across operational, regulatory, resilience, and growth dimensions,” said Drew Marsh, Entergy Chair and Chief Executive Officer. “These outcomes are the result of strong execution and leveraging a stakeholder engagement model that starts with the customer and ensures value is created for all stakeholders.”

Business highlights included the following:

• Entergy narrowed its 2024 adjusted EPS guidance range to $7.15 to $7.35 (pre-split) and updated longer-term outlooks.
• E-LA filed for approval of significant new transmission and generation investment to support a new large customer.
• E-MS announced plans to build its first new natural gas power station in 50 years.
• E-AR’s 100-megawatt Walnut Bend Solar was placed in service.
• E-AR closed on West Memphis Solar and Driver Solar.
• E-LA issued an RFP using its new streamlined process to acquire 3 gigawatts of solar resources.
• The LPSC approved several items for E-LA including its FRP renewal, the gas LDC sale, the settlement with SERI to resolve all complaints against SERI (subject to FERC approval), and an agreement to divest E-LA’s share of Grand Gulf energy and capacity to E-MS.
• Filings submitted to the MPSC and FERC to divest E-LA’s share of Grand Gulf energy and capacity to E-MS.
• The CCNO approved $100 million of E-NO’s resilience plan for investment over the next two years.
  The PUCT approved an E-TX DCRF filing.
• Entergy’s Board of Directors declared a quarterly dividend of $1.20 per share, a six percent increase.
• Entergy’s Board of Directors approved a two-for-one stock split of Entergy’s common stock, effective with trading starting December 13, 2024.
• Entergy was named as one of the nation’s top utilities in economic development by Site Selection magazine for the 17^th consecutive year.

Consolidated earnings (GAAP and non-GAAP measures)
Third quarter and year-to-date 2024 vs. 2023
	Third quarter			Year-to-date
	2024	2023	Change	2024	2023	Change
(After-tax, $ in millions)
As-reported earnings	645	667	(22)	769	1,369	(600)
Less adjustments	–	(27)	27	(517)	42	(559)
Adjusted earnings (non-GAAP)	645	694	(49)	1,286	1,327	(41)
Estimated weather impact	41	135	(94)	70	103	(33)
(After-tax, per share in $)
As-reported earnings	2.99	3.14	(0.15)	3.58	6.45	(2.87)
Less adjustments	–	(0.13)	0.13	(2.41)	0.20	(2.61)
Adjusted earnings (non-GAAP)	2.99	3.27	(0.28)	5.99	6.25	(0.26)
Estimated weather impact	0.19	0.64	(0.45)	0.33	0.48	(0.16)

Consolidated results

For third quarter 2024, the company reported earnings of $645 million, or $2.99 per share, on an as-reported basis and an adjusted basis. This compared to third quarter 2023 earnings of $667 million, or $3.14 per share, on an as-reported basis and $694 million, or $3.27 per share, on an adjusted basis.

Business results

Utility

For third quarter 2024, the Utility business reported earnings attributable to Entergy Corporation of $787 million, or $3.65 per share, on an as-reported basis and an adjusted basis. This compared to third quarter 2023 earnings of $752 million, or $3.54 per share, on an as-reported basis and $810 million, or $3.82 per share, on an adjusted basis. There were several drivers for the third quarter as-reported increase.

In third quarter 2023, as a result of Entergy Arkansas’ offer to forgo its opportunity to seek recovery of costs resulting from the March 2013 ANO stator incident, Entergy Arkansas recorded a write-off totaling $(78 million) ($(59 million) after tax). The write-off was considered an adjustment and excluded from adjusted earnings.

Other drivers for the increase included:

• the net effect of regulatory actions across the operating companies,
• higher other income (deductions) primarily due to a decrease in non-service pension costs, and
• lower other O&M.

These drivers were partially offset by:

• the effects of weather on retail volume,
• higher depreciation expense, and
• higher interest expense.

On a per share basis, third quarter 2024 results reflected higher diluted average number of common shares outstanding due to the settlement of equity forwards in fourth quarter 2023 under the company’s ATM program, option exercises under the company’s stock-based compensation plans, and the dilutive effect from unsettled equity forwards under the company’s ATM program as a result of an increase in the stock price.

Parent & Other

For third quarter 2024, Parent & Other reported a loss attributable to Entergy Corporation of $(142 million), or (66) cents per share, on an as-reported basis and an adjusted basis. This compared to a third quarter 2023 loss of $(85 million), or (40) cents per share, on an as-reported basis, and a loss of $(117 million), or (55) cents per share, on an adjusted basis.

Drivers for the third quarter variances included:

• the effects of the third quarter 2023 DOE spent fuel litigation settlement related to IPEC on asset write-offs and impairments (considered an adjustment and excluded from adjusted earnings),
• lower other income (deductions) due to lower non-service pension income and changes in legal provisions, and
• higher interest expense.

On a per share basis, third quarter 2024 results reflected higher diluted average number of common shares outstanding (see drivers in Utility section).

Earnings per share guidance

Entergy announced a two-for-one forward stock split of Entergy’s issued common stock. Each record holder of common stock as of the close of market on December 5, 2024, will receive one additional share of common stock for each then-held share, to be distributed after market close on December 12, 2024. Trading is expected to commence on a split-adjusted basis at market open on December 13, 2024.

Entergy narrowed its 2024 adjusted EPS guidance to a range of $7.15 to $7.35 (pre-split).

The company has provided 2024 earnings guidance with regard to the non-GAAP measure of adjusted earnings per share. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below under “Non-GAAP financial measures.” The company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the adjustments that may occur during the period. Potential adjustments include the exclusion of regulatory charges related to outstanding regulatory complaints and significant income tax items.