Entergy lifts earnings forecast on profitable 3Q

In its earnings report for the quarter ending Sept. 30, Entergy says its profit rose 27.4% 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, on the quarter. That compares with $492.9 million, or $2.62 per share, a year earlier. Revenue increased 2% 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 says its utility business increased profits by 57% 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. Sales rose 0.1% on the quarter for its residential business, and 0.3% for its commercial and governmental customers; industrial sales rose 7.3%. Entergy’s wholesale power business posted earnings of $130.2 million, 9% lower than the year-ago quarter, primarily because of 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 range of $6.35 to $6.85 per share stated previously.