Boston, MA 04/28/2014 (wallstreetpr) – The electricity major Entergy Corporation (NYSE:ETR) reported 1Q2014 results that exceeded Wall Street expectations. The company also made positive adjustments to performance outlook for the current year. The management linked first quarter success to the winter weather. However, the company also noted positive performance indicators in the upcoming quarters that should support growth. In that case, the company expects industrial, commercial and residential to grow even though the weather condition has improved.
Earnings in summary
The $13 billion market capped energy giant reported first quarter 2014 net income of $410.1 million or $2.29 per share. That compared with net income of $167.7 million or $0.94 per share in the corresponding quarter of 2014. The earnings easily exceeded Wall Street expectations of $2.11 per share.
The stress in fuel distribution and the winter weather supported the strong performance in the first quarters especially in the Northeast region. The company’s efficient operation helped keep expenses low and supported higher earnings amid revenue increase.
The weather-related stress in the first quarter led to higher prices in the power and fuel systems, according to Entergy Corporation (NYSE:ETR) CEO Leo Denault.
Entergy Corporation (NYSE:ETR) announced that the harsh winter condition helped bring to the fore the value of its nuclear power plants in the Northeast region. Due to regulatory issues and power and fuel supply stress in the Northeast region coupled with regulatory issues, Mr. Denault said the environment is good for the company’s growth.
Performance outlook
Entergy Corporation (NYSE:ETR) expects fiscal 2014 earnings to range between $5.55 and $6.75 per share. The company previously guided fiscal 2014 to result in earnings per share in the range of $4.60 to $5.40.
The improvement in the earnings guidance suggests the confidence in the management and the fact that the company is keen on driving higher value for the shareholders.
A sound management, stable prices and strong utility demand should help Entergy Corporation (NYSE:ETR) to experience higher sales and profits this year.
