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Entergy (ETR) Q3 Earnings call transcript Oct 31, 2024

AInvestFriday, Nov 1, 2024 2:10 am ET
2min read

Entergy Corporation's third-quarter 2024 earnings call delivered an impressive update on the company's financial performance and strategic growth initiatives. The call, led by CEO Drew Marsh and CFO Kimberly Fontan, highlighted Entergy's strong financial results, robust industrial sales growth, and ambitious plans for clean energy investments.

Financial Highlights and Future Outlook

Entergy reported a strong quarterly adjusted EPS of $2.99, with a revised bottom of the guidance range, reflecting the company's solid financial health. The company's earnings growth is attributed to its strategic focus on customer-driven capital investments and the addition of a new large customer in Louisiana. These investments are expected to drive significant growth, with an industrial sales compound annual growth rate of 11% to 12% through 2028.

Entergy's financial outlook is optimistic, with a raised bottom of the guidance range for 2024 and a long-term outlook starting in 2026. The company's capital plan has increased by $7 billion since Analyst Day, driven by higher industrial sales and customer interest in renewables. This strategic shift is expected to support Entergy's growth and position it well for the future.

Industrial Sales Growth and Clean Energy Investments

Entergy's industrial sales growth story continues to be robust, with a significant new customer in Louisiana driving a 10% increase in sales. The company's strategic focus on clean energy products has been met with strong customer interest, particularly in renewable and nuclear energy solutions. Entergy's capital plan includes a significant investment in renewable energy, with plans to increase its renewable energy portfolio by over 800 megawatts.

The company's strategic shift towards clean energy is not only driven by customer demand but also regulatory requirements. Entergy is actively exploring opportunities in carbon capture and storage (CCS) technology, recognizing the importance of this technology in meeting future federal emissions requirements. The company's commitment to sustainability and decarbonization is a key differentiator, setting it apart from its competitors and positioning it for long-term growth.

Storm Preparedness and Resilience Investments

Entergy's operational and financial preparedness was evident in its response to Hurricane Francine, with the company restoring power to 90% of its customers within just three days. The company's investment in storm preparedness and resilience is a testament to its commitment to customer service and operational excellence. Entergy's ongoing resilience program, which includes the launch of a formal accelerated resilience program in New Orleans, is a significant step towards creating a more robust and resilient grid.

Transition and Key Announcements

The call marked significant transitions for Entergy, with Bill Abler stepping into a new role leading commercial planning and operations for its utilities and Liz Hunter taking over as Vice President of Investor Relations. Additionally, Rod West, Entergy's Utility Group President, announced his retirement, marking the end of an era for the company. Rod's legacy of stakeholder engagement and customer-centric strategies will continue to shape Entergy's growth trajectory.

In conclusion, Entergy's third-quarter 2024 earnings call underscored the company's strong financial performance, strategic growth initiatives, and commitment to clean energy and customer service. With a robust capital plan and a focus on innovation and sustainability, Entergy is well-positioned for long-term growth and success. The company's strategic shift towards clean energy and decarbonization, coupled with its operational excellence, sets it apart from its competitors and positions it as a leader in the energy sector.

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