Entergy Missed Earnings Estimates By A Wide Margin ( down 4%)

Entergy's CEO: 

"...Average Northeast power prices for the second quarter were more than 40% below last year’s levels. Moreover, forward power prices continue their decline following an average of more than 6% for our plants in the Northeast since the end of March this year. These low prices are coupled with the market structure that does not reflect the value of nuclear power. Congress continues to indicate its concern about the specific market structure challenges. On July 8, the Chairs of the Senate and House committees and subcommittees responsible for energy and power Senator Murkowski and congressmen Upton and Whitefield communicated this concern in a letter to the Federal Energy Regulatory Commission Chairman, Norman Bay. In the letter, the committee chairs raised concerns about organized wholesale electricity markets, including the impacts certain market rules were having on reliable base load plants, including nuclear plants and ultimately on consumers. Entergy shares these concerns and we are encouraged by FERC’s willingness to consider these issues. We are also hopeful that FERC will take subsequent action as soon as it can..."

So not having Vermont Yankee running has cost Entergy a lot of money this quarter? 

"The decline was due to lower wholesale power prices and less of nuclear generation. Closure of the Vermont Yankee Nuclear Power Station last year also played a role in pulling down this segment’s results."

Stock price down by over 4% at 2:30 pm today? 

Entergy Q2 Earnings & Revenues Miss Estimates, Down Y/Y- Analyst Blog 

By Zacks Equity Research 2 hours ago 

Entergy Corporation ETR reported second-quarter 2015 operational earnings of 83 cents per share, widely missing the Zacks Consensus Estimate of $1.13 by 26.5%.

The reported number also declined 25.2% from $1.11 per share in the year-ago period. The downside was due to bleak performance at all its three segments. 

Revenues

Entergy’s second-quarter operating revenues of $2,713.2 million also fell short of the Zacks Consensus Estimate by 7.9%. Revenues declined 9.5% from $2,996.7 million in the prior year.

Operational Results

Entergy’s total operating expenses declined 8.1% year over year to $2,335.8 million primarily due to lower input costs.

Operating income for the second quarter also dropped nearly 17% to $377.4 million.

Entergy recorded $159.8 million of interest expenses in the quarter compared with $155.8 million incurred last year.

Segment Results

Utility: The segment’s quarterly operating revenues were $2,273.9 million compared with $2,409.4 million in second-quarter 2014. The downside was due to a 0.2% and 1.5% respective decline in commercial and industrial sales.

Entergy Wholesale Commodities (EWC): Entergy Wholesale Commodities' operating revenues were $439.3 million for the second quarter. In the corresponding quarter last year, revenues were $587.3 million. The decline was due to lower wholesale power prices and less of nuclear generation. Closure of the Vermont Yankee Nuclear Power Station last year also played a role in pulling down this segment’s results.

Financial Condition

As of Jun 30, 2015, cash and cash equivalents were $910.4 million compared with $1,422 million as of Dec 31, 2014.

Long-term debt as of Jun 30, 2015 was $12.1 billion compared with $12.5 billion as of Dec 31, 2014.

In the second quarter of 2015, cash from operating activates was $727.4 million, down from $761.4 million in the year-ago quarter.

Guidance

Entergy affirmed its 2015 earnings guidance in the range of $5.10–$5.90 per share on an operational basis.