Utility Entergy beats Q2 profit estimates on power demand boost

Reuters
07/30
Utility Entergy beats <a href="https://laohu8.com/S/QTWO">Q2</a> profit estimates on power demand boost

July 30 (Reuters) - U.S. electric utility Entergy ETR.N beat analysts' estimate for second-quarter profit on Wednesday, helped by higher electricity rates and strong demand for power.

The company also affirmed its 2025 adjusted profit forecast of $3.75 to $3.95 per share. Analysts expect a profit of $3.87 per share, according to data compiled by LSEG.

According to the U.S. Energy Information Administration, power consumption in the country is expected to reach record highs in 2025 and 2026, driven by rapid expansion of data centers dedicated to artificial intelligence and cryptocurrency, and as homes and businesses use more electricity for heat and transportation.

The S&P index tracking utilities .SPLRCU rose 3.5% in the quarter ended June 30.

The global trade war sparked by the Trump administration threatens to stall the AI frenzy as companies rethink how they spend the billions of dollars earmarked for developing AI infrastructure.

U.S. utilities have been adding billions of dollars to their capital expenditure budgets as they field massive requests for new power capacity from Big Tech firms scouring the country for viable locations for data centers, which could support complex AI-related tasks.

Entergy, based in New Orleans, Louisiana, provides electricity to nearly 3 million customers across Arkansas, Louisiana, Mississippi and Texas.

The company posted an adjusted profit of $1.05 per share for the three months ended June 30, compared with analysts' average estimate of 92 cents, according to data compiled by LSEG.

(Reporting by Katha Kalia in Bengaluru; Editing by Shailesh Kuber)

((Katha.Kalia@thomsonreuters.com;))

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