Entergy Corp. (ETR) forecast fourth-quarter earnings slightly
above Wall Street estimates as higher earnings at its utility and
wholesale commodities businesses helped offset increased income tax
expense.
The merchant power and utility projects per-share earnings of 93
cents while analysts surveyed by Thomson Reuters expect 91 cents. A
year earlier, Entergy's earnings were $1.30 a share, and the
company attributed the decrease to lower results at its parent and
other segment.
The company said it will record charges for outside services
related to the proposed divestment and subsequent merger of its
electric transmission business.
Entergy last month unveiled plans to spin off its electric
transmission business and merge the operation with ITC Holdings
Corp. (ITC) in an effort to increase its financial flexibility and
protect its credit quality.
Entergy reported in November its third-quarter profit rose 27%
as a tax settlement significantly reduced its income tax expense
and utility earnings surged.
Shares closed Friday at $69.93 and were inactive premarket. The
stock has risen 2.1% over the past three months.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283;
melodie.warner@dowjones.com