Entergy (ETR) Q3 Earnings: Stock Likely To Beat Estimates?
Zacks Investment Research | Oct 20, 2016 07:16AM ET
Entergy Corporation (NYSE:ETR) will release third-quarter 2016 financial numbers before the opening bell on Oct 25. The company reported a positive earnings surprise of 201.94% in the last reported quarter. Let’s see how things are shaping up prior to this announcement.
Why a Likely Positive Surprise?
Our proven model shows that Entergy is likely to beat earnings this season because it has the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) to be able to beat estimates, and Entergy has the right mix.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +8.07%. This is because the Most Accurate estimate stands at $2.01, while the Zacks Consensus Estimate is pegged slightly lower at $1.86. This is a meaningful indicator of a likely positive earnings surprise.
Zacks Rank: Entergy’s Zacks Rank #2, when combined with a positive ESP, makes us reasonably confident of an earnings beat this quarter.
Conversely, Sell-rated stocks (#4 or #5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
ENTERGY CORP Price and EPS Surprise
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