Entergy (NYSE:ETR) issues downside guidance for Q2, seeing operational EPS of ~$1.10 vs. $1.16 analyst consensus estimate, although the figure would be higher than $1.01 in the year-ago quarter.
At ETR's wholesale commodities segment, nuclear sales volume rose because of a lack of refueling outages and reductions in unplanned outages; higher power prices for the nuclear fleet also boosted results.
At the utility group, revenue increased primarily because of price factors related to rate actions; lower maintenance expenses also helped, offset by a higher income tax rate.
Reaffirms guidance for FY 2014, seeing EPS of $5.55-$6.75 vs. $6.17 consensus.
Environmentalists are angry at the Obama administration's scaled-back regulation meant to keep fish from being sucked into the water intakes of factories and power plants.
The EPA regulation issued yesterday specified a range of at least seven options facility operators can use to reduce the 2B fish, crab or shrimp that die each year in water intakes, but critics say the agency left too many decisions with state regulators and are threatening to sue to force tougher action.
Power companies operating large coal or nuclear plants such as Entergy (ETR), Exelon (EXC), Duke Energy (DUK) and Dominion (D) had urged the EPA to grant flexibility and time to meet the water-intake standards, and generally were satisfied with the outcome.
The problem is that owners can only cut so much of a facility's emissions by increasing efficiency, so a lot of the reduction could have to come by "going outside the fence," such as by deepening the use of renewable energy, improving grid efficiency and encouraging customers to use less electricity.
Trying to compel operators to rely on such external measures could run afoul of what the government is allowed to do under the Clean Air Act.
Entergy's (ETR +0.1%) Q1 earnings more than doubled and revenues rose 23% Y/Y to $3.2B, but shares are flat as investors attribute the strength to significantly higher wholesale electricity prices resulting from cold winter weather and limitations of the pipeline infrastructure in the Northeast.
ETR says that even excluding weather impacts, sales growth was positive for residential, commercial and industrial customer classes.
Reaffirms guidance for FY 2014, seeing operational EPS of $5.55-$6.75 vs. $5.84 analyst consensus estimate.
ETR sees Q1 EPS of ~$2.28 vs. $1.15 analyst consensus estimate, reflecting cold winter weather and northeast pipeline infrastructure limitations.
Raises FY 2014 projected EPS to $5.55-$6.75 from $4.60-$5.40 prior and $5.34 consensus, due to higher northeast spot and forward prices and market volatility, and favorable weather for the utility in Q1.