Utility Entergy posts better-than-expected quarterly profit on surge in power demand

Oct 29 (Reuters) - U.S. electric utility Entergy ETR.N beat analysts' estimates for third-quarter profit on Wednesday, helped by higher retail sales and strong demand for power.

Shares of Entergy have risen over 25% so far this year, compared with the broader S&P utilities index's .SPLRCU gain of 13.6%.

Power consumption is set to hit record highs in 2025 and 2026, the U.S. Energy Information Administration said, driven by surging electricity demand from AI and cryptocurrency data centers as well as increased usage in homes and businesses for heating and transport.

Extreme heat during peak summer months also prompted consumers to increase their usage of air conditioners and refrigerators, boosting profits for utilities such as Entergy.

New-Orleans-based Entergy, which provides electricity to nearly 3 million customers across Arkansas, Louisiana, Mississippi and Texas, said its weather-adjusted retail sales increased 4.4%, buoyed by higher usage of residential and industrial classes.

Entergy won Texas approval in September to build two natural gas plants to meet surging power demand. Its Louisiana unit received the green light in August for infrastructure tied to Meta's META.O new data center in Richland Parish.

For the reported quarter, Entergy's retail sales rose to 37,124 gigawatt hours, a near 4% growth from a year earlier.

Its industrial sales grew 7.3% from 15,150 GWh a year earlier.

The company narrowed its full-year 2025 profit forecast to between $3.85 and $3.95 per share from a prior view of $3.75 to $3.95 per share. Analysts estimated a profit of $3.91 per share, according to data compiled by LSEG.

Enterfy posted an adjusted profit of $1.53 per share for the three months ended September 30, compared with analysts' average estimate of $1.45, according to data compiled by LSEG.