NEW ORLEANS (dpa-AFX) - Entergy Corp. (ETR) Friday provided a weak full year 2012 earnings outlook while backing its earnings guidance for the full year 2011. The company said it plans to maintain a competitive capital return program of $4 billion - $5 billion in the next three years. The capital investment plan for the period is over $7.0 billion.
The New Orleans, Louisiana-based company affirmed its 2011 earnings guidance range of $7.15 to $7.65 per share on as-reported and operational bases. The guidance was updated on Tuesday from the previous guidance range of $6.35 to $6.85 per share, reflecting a tax settlement with the Internal Revenue Service. The Street currently expect full-year earnings of $7.12 per share for the full year.
Entergy initiated its 2012 earnings guidance in the range of $5.40 to $6.20 per share on both as-reported and operational bases. Analysts currently estimate earnings of $6.01 per share for the year.
With 2009 as the base year and 2014 as the targeted horizon, Entergy expects 6 to 8 percent compound annual net income growth rate for Utility. The company continues to see value-added investment opportunities at the Utility in the coming years.
For Wholesale Commodities, the prognosis is different, with declines seen through 2013. From then on, the company sees an upturn for the segment.
The company, however, said Entergy Wholesale Commodities offers a valuable long-term option from the potential positive effects of ongoing economic growth. The investment outlook for Entergy Wholesale Commodities supports continued safe, secure and reliable operations and opportunistic investments.
Entergy also believes the value of the Wholesale Commodities segment would be preserved by enhancing opportunities to capture additional value such as the planned acquisition of the Rhode Island State Energy Center power plant.
The company expects to fund the capital program without issuing traditional common equity. Entergy believes capital deployment through dividends and share repurchases could total as much as $4 billion - $5 billion from 2010 - 2014 under the current long-term business outlook.
The preliminary capital plan for 2012 through 2014 anticipates $7.1 billion for investment, including $3.2 billion of maintenance capital.
The remaining $3.9 billion would be for Utility's portfolio transformation strategy, and dry cask storage, nuclear license renewal efforts, component replacement and other investments in Entergy Wholesale Commodities.
Entergy reported increased earnings for the third quarter, on reported as well as operational basis.
ETR closed Friday's regular trading at $69.46, down $0.10 or 0.14%, on the NYSE. In the after-hours, the stock lost $0.18 or 0.26%. Over the past year, the stock traded in a range of $57.60 - $75.76.
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