Entergy's Q3 net income up 27.4% year-over-year to US$628.1M as it lowered tax-related expenses following IRS settlement; revenue up 2% to US$3.4B
November 1, 2011
– Tax settlement lifts Entergy 3Q earnings by 27 percent
Entergy Corp. said Tuesday that its profit rose 27.4 percent in the third quarter as it lowered tax-related expenses following a settlement with the Internal Revenue Service. Utility sales also rose slightly in the quarter.
The New Orleans power company reported net income of $628.1 million, or $3.53 per share, for the three months ended Sept. 30. That compares with $492.9 million, or $2.62 per share, a year earlier.
Revenue increased 2 percent to $3.4 billion from $3.3 billion a year ago.
Analysts had expected earnings of $3.14 per share on revenue of $3.5 billion, according to FactSet.
Entergy owns and operates power plants around the country, and it delivers power to 2.7 million utility customers in Arkansas, Louisiana, Mississippi and Texas.
The company said its utility business increased profits 57 percent in the quarter to $524.1 million, though much of the increase was due to a settlement with the IRS that cut tax expenses for the quarter. During the quarter, sales rose 0.1 percent for its residential business, 0.3 percent for its commercial and governmental customers, and industrial sales rose 7.3 percent.
Its wholesale power business posted earnings of $130.2 million, 9 percent lower than the year-ago quarter, due primarily to lower prices from its nuclear power plants.
Entergy lifted its forecast for 2011 operational earnings to between $7.15 and $7.65 per share, up from a previous range of $6.35 to $6.85 per share.
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