KeyCorp Has Optimistic Opinion of Entergy FY2028 Earnings

Entergy Corporation (NYSE:ETR) – Analysts at KeyCorp boosted their FY2028 earnings per share (EPS) estimates for Entergy in a note issued to investors on Monday, October 12th. KeyCorp analyst S. Karp now expects that the utilities provider will post earnings per share of $5.77 for the year, up from their prior forecast of $5.75. KeyCorp currently has an “Overweight” rating and a $118.00 target price on the stock. The consensus estimate for Entergy’s current full-year earnings is $4.40 per share. KeyCorp also issued estimates for Entergy’s FY2029 earnings at $6.49 EPS and FY2030 earnings at $7.32 EPS.

Entergy (NYSE:ETR) last issued its earnings results on Wednesday, July 29th. The utilities provider reported $1.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.01 by $0.02. The firm had revenue of $3.52 billion for the quarter, compared to analysts’ expectations of $3.49 billion. Entergy had a return on equity of 10.53% and a net margin of 13.40%. During the same period in the previous year, the firm posted $1.05 earnings per share. Entergy has set its FY 2026 guidance at 4.250-4.450 EPS.

ETR has been the subject of several other research reports. Wall Street Zen cut Entergy from a “hold” rating to a “sell” rating in a report on Sunday, August 9th. JPMorgan Chase & Co. decreased their price objective on Entergy from $137.00 to $130.00 and set an “overweight” rating on the stock in a report on Tuesday. BMO Capital Markets upped their price objective on Entergy from $123.00 to $124.00 and gave the stock an “outperform” rating in a report on Wednesday, July 22nd. Weiss Ratings downgraded Entergy from a “buy (b+)” rating to a “buy (b)” rating in a research report on Thursday, August 20th. Finally, Morgan Stanley cut their target price on shares of Entergy from $105.00 to $98.00 and set an “equal weight” rating for the company in a report on Friday, September 18th. Seventeen research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $119.58.

Entergy Price Performance

Shares of Entergy stock opened at $105.09 on Wednesday. The stock has a 50 day moving average of $104.49 and a 200 day moving average of $109.74. Entergy has a 12 month low of $90.87 and a 12 month high of $118.44. The firm has a market cap of $49.04 billion, a PE ratio of 26.46, a PEG ratio of 2.33 and a beta of 0.46. The company has a current ratio of 0.91, a quick ratio of 0.70 and a debt-to-equity ratio of 1.73.

Institutional Investors Weigh In On Entergy

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Callan Family Office LLC bought a new position in shares of Entergy during the 2nd quarter worth $3,250,000. Illinois Municipal Retirement Fund grew its position in shares of Entergy by 18.3% in the 1st quarter. Illinois Municipal Retirement Fund now owns 180,358 shares of the utilities provider’s stock worth $20,265,000 after buying an additional 27,868 shares during the last quarter. Swiss National Bank grew its holdings in Entergy by 7.1% in the first quarter. Swiss National Bank now owns 1,310,700 shares of the utilities provider’s stock worth $147,270,000 after purchasing an additional 87,300 shares during the last quarter. Tema ETFs LLC boosted its holdings in Entergy by 41.8% in the second quarter. Tema ETFs LLC now owns 261,561 shares of the utilities provider’s stock worth $30,043,000 after acquiring an additional 77,126 shares in the last quarter. Finally, Bank of America Corp DE acquired a new stake in Entergy in the second quarter worth about $1,991,669,000. 88.07% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In related news, insider Laura R. Landreaux sold 5,600 shares of Entergy stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $106.20, for a total value of $594,720.00. Following the completion of the transaction, the insider owned 22,589 shares in the company, valued at approximately $2,398,951.80. This trade represents a 19.87% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Ralph Lewis Ropp purchased 1,000 shares of the company’s stock in a transaction that occurred on Thursday, August 6th. The stock was bought at an average price of $106.08 per share, with a total value of $106,080.00. Following the transaction, the director owned 3,423 shares of the company’s stock, valued at $363,111.84. This represents a 41.27% increase in their position. The SEC filing for this purchase provides additional information. 0.21% of the stock is currently owned by corporate insiders.

Entergy Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Thursday, August 13th were given a dividend of $0.64 per share. This represents a $2.56 annualized dividend and a dividend yield of 2.4%. The ex-dividend date was Thursday, August 13th. Entergy’s dividend payout ratio is currently 65.64%.

Key Stories Impacting Entergy

Here are the key news stories impacting Entergy this week:

• Positive Sentiment: KeyCorp raised its EPS forecasts for Entergy’s fiscal 2028, 2029 and 2030, to $5.77, $6.49 and $7.32, respectively. The increases were modest but suggest improving confidence in the utility’s longer-term earnings growth. KeyCorp maintained an “Overweight” rating and a $118 price target. KeyBanc Adjusts Entergy Price Target
• Positive Sentiment: JPMorgan retained its “Overweight” rating and set a $130 target, implying substantial potential upside from the referenced share price. JPMorgan Entergy Price Target
• Neutral Sentiment: Entergy highlighted the 25th anniversary of its Environmental Initiatives Fund. The announcement reinforces the company’s sustainability profile and community engagement, but it is unlikely to have a material near-term effect on earnings. Entergy Environmental Initiatives Fund
• Negative Sentiment: KeyCorp reduced its price target from $123 to $118, while JPMorgan cut its target from $137 to $130. Although both firms remain bullish, the target reductions indicate more cautious near-term valuation assumptions. KeyBanc Adjusts Entergy Price Target
• Negative Sentiment: Entergy recently underperformed competing utilities despite posting a gain in the prior session, suggesting relative weakness within the sector. Entergy Underperforms Utility Competitors

About Entergy

Entergy Corporation is an integrated energy company that provides electric power and related services through regulated utility subsidiaries. Its operations include electricity generation, transmission and distribution, as well as natural gas distribution and other utility services.

Entergy serves customers across Arkansas, Louisiana, Mississippi and Texas, including the city of New Orleans. The company operates a diverse generation portfolio that includes nuclear, natural gas, renewable and other resources, and it supplies electricity to residential, commercial, industrial and governmental customers.

Founded in 1949 as Middle South Utilities, the company adopted the Entergy name in 1994.