Entergy's CEO Denault Sizing Up Environment

 Entergy (ETR) Stock Rises After CEO Denault Appears on Jim Cramer's 'Mad Money'

NEW YORK (TheStreet) -- Shares of Entergy (ETR - Get Report) rose 0.65% to $74.24 in morning trading Thursday after chairman and CEO Leo Denault appeared on Jim Cramer's Mad Money show on CNBC.

Denault said the industrial renaissance in America's south and along the Mississippi River is ongoing. Furthermore, industries are taking advantage of Entergy's

Does Denault think their nuclear fleet should be producing electricity 20% lower than the nuclear fleet average across the USA? Is that the root of their problem. These guys are the Walmart of the Utility industry. Do you want Walmart running a nuclear power plant? 

electricity rates, which are 20% below the national average, in order to build new plants. This gives Entergy numerous growth opportunities to increase its dividend, he added.

Entergy has a 4.5% yield.

Denault also talked about the recent transformer fire outside the company's Indian Point nuclear plant in Westchester County, New York. He noted the fire was extinguished quickly and the plant was safely shut down, but it must stay offline for a few weeks because the transformers are what transmit the power from the plant to the grid.

Cramer asked about new plants under construction, and the CEO explained that the company is working quickly to replace outdated plants and increase its capacity in order to meet demand. Many of the new plants are natural gas, which are the quickest to construct, but the company is also building nuclear and solar plants.

Cramer again recommended Entergy on the show.

Separately, TheStreet Ratings team rates ENTERGY CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate ENTERGY CORP (ETR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. Among the primary strengths of the company is its attractive valuation levels, considering its current price compared to earnings, book value and other measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

§  ENTERGY CORP's earnings per share declined by 26.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ENTERGY CORP increased its bottom line by earning $5.22 versus $3.98 in the prior year. This year, the market expects an improvement in earnings ($5.50 versus $5.22).

§  ETR, with its decline in revenue, underperformed when compared the industry average of 2.8%. Since the same quarter one year prior, revenues slightly dropped by 9.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

§  In its most recent trading session, ETR has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

§  Net operating cash flow has decreased to $610.96 million or 20.36% when compared to the same quarter last year. Despite a decrease in cash flow of 20.36%, ENTERGY CORP is in line with the industry average cash flow growth rate of -25.99%.