By Anna Prior
Entergy Corp.'s (ETR) third-quarter earnings fell 29% as the
power company recorded an uptick in operating expenses that weighed
on the bottom-line and masked a rise in revenue.
Entergy, which owns utilities in Arkansas, Louisiana,
Mississippi and Texas and sells power on the wholesale market, has
been pressured by low U.S. natural-gas prices, which have pushed
wholesale power prices lower.
Entergy plans to spin off its electric-transmission business and
merge the operation with ITC Holdings Corp. (ITC). The company said
that a revised closing date in 2014 has not yet been settled upon
and that the definitive agreement allows for either party to
terminate the deal if the transaction hasn't occurred by the end of
this year.
For the latest quarter, Entergy reported a profit of $239.9
million, down from $337.1 million a year earlier. On a per-share
basis, which reflects preferred dividend impacts, earnings were
$1.34 compared with $1.89. Excluding special items, adjusted
earnings were up at $2.41 a share from $1.95.
Earlier this month, the company said it expected to report a
profit of $2.40 a share due to improved revenue at its utility
business. The forecast topped the $1.98 a share analysts were
expecting at that time.
Revenue rose 13% to $3.35 billion. Analysts polled by Thomson
Reuters recently projected revenue of $3.14 billion.
Total operating expenses climbed 30% to $2.96 billion.
Electricity revenue rose 17% to $2.7 billion, boosted by pricing
adjustments, higher volume, partially offset by less favorable
weather.
For 2014, Entergy said it expects adjusted earnings between
$4.60 and $5.40 a share. Analysts were looking for per-share
earnings of $5.12.
Shares of Entergy, which affirmed its 2013 earnings outlook,
closed Monday at $68.11 and were inactive premarket. Through the
close, the stock had risen 6.8% since the start of the year.
Write to Anna Prior at anna.prior@wsj.com
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