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Duke Energy (DUK) Q3 Earnings Beat, Revenues Decline Y/Y
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Duke Energy Corporation (DUK - Free Report) reported third-quarter 2020 adjusted earnings of $1.87 per share, which surpassed the Zacks Consensus Estimate of $1.79 by 4.5%. The bottom line figure also came in 4.5% higher than the year-ago quarter’s earnings.
Including one-time adjustments, the company generated GAAP earnings of $1.74 per share, which deteriorated from the year-ago quarter’s earnings figure of $1.82.
The third-quarter bottom line was primarily impacted by charges related to partial settlements in the Duke Energy Carolinas and Duke Energy Progress North Carolina rate cases.
Total Revenues
Total operating revenues came in at $6,721 million, which dropped 3.2% from $6,940 million a year ago. The reported figure also missed the Zacks Consensus Estimate of $6,964 million by 3.5%.
Duke Energy Corporation Price, Consensus and EPS Surprise
The Regulated electric unit’s revenues were $6,315 million (down 3.1% year over year), representing 94% of total revenues in the quarter.
Revenues from the regulated natural gas business totaled $214 million, down 4% year over year.
The Non-regulated electric and Other segment generated revenues of $192 million, which declined 5% year over year.
Operational Update
Duke Energy’s total operating expenses amounted to $4,909 million in the reported quarter, down 2% year over year. The decline was on account of lower natural gas costs as well as reduced operation, maintenance and other expenses. Also, lower expenses related to fuel used in electric generation and purchases power as well as reduced property and other taxes contributed to reduced operating expenses.
Operating income declined 6% to $1,814 million from $1,929 million in the year-ago quarter.
Interest expenses dropped to $522 million from $572 million in the year-ago quarter.
Segmental Highlights
Electric Utilities & Infrastructure: Adjusted income in the third quarter totaled $1,412 million, which was higher than $1,366 million in the year-ago quarter.
Gas Utilities & Infrastructure: Adjusted loss at this segment totaled $8 million against adjusted income of $26 generated million a year ago.
Commercial Renewables: This segment recorded an adjusted income of $60 million in the quarter under review compared with $40 million in the year-ago quarter.
Other: The segment includes corporate interest expenses not allocated to other business units, results from Duke Energy’s captive insurance company and other investments.
This segment incurred an adjusted loss of $103 million compared with a loss of $124 million in the year-ago quarter.
Financial Condition
As of Sep 30, 2020, Duke Energy had cash & cash equivalents of $308 million, down from $311 million as of Dec 31, 2019. Long-term debt was $56.05 billion at the end of third-quarter 2020 compared with $54.99 billion at 2019-end.
At the end of third quarter, the company had net cash from operating activities of $6,766 million compared with $5,637 million in the year-ago period.
Guidance
Duke Energy narrowed its 2020 adjusted EPS guidance. It currently expects its adjusted earnings per share to be in the range of $5.05-$5.20, compared with the earlier guided range of $5.05-$5.45. The Zacks Consensus Estimate for 2020 earnings of $5.07 per share lies below the mid-point of the company’s updated projected range.
Entergy (ETR - Free Report) reported third-quarter 2020 adjusted earnings of $2.44 per share, which surpassed the Zacks Consensus Estimate of $2.42 by 0.8%.
American Electric Power (AEP - Free Report) reported third-quarter 2020 adjusted earnings per share of $1.47, which beat the Zacks Consensus Estimate of $1.46 by 0.7%.
NextEra Energy (NEE - Free Report) reported third-quarter 2020 adjusted earnings of $2.66 per share, which beat the Zacks Consensus Estimate of $2.65 by 0.4%.
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Duke Energy (DUK) Q3 Earnings Beat, Revenues Decline Y/Y
Duke Energy Corporation (DUK - Free Report) reported third-quarter 2020 adjusted earnings of $1.87 per share, which surpassed the Zacks Consensus Estimate of $1.79 by 4.5%. The bottom line figure also came in 4.5% higher than the year-ago quarter’s earnings.
Including one-time adjustments, the company generated GAAP earnings of $1.74 per share, which deteriorated from the year-ago quarter’s earnings figure of $1.82.
The third-quarter bottom line was primarily impacted by charges related to partial settlements in the Duke Energy Carolinas and Duke Energy Progress North Carolina rate cases.
Total Revenues
Total operating revenues came in at $6,721 million, which dropped 3.2% from $6,940 million a year ago. The reported figure also missed the Zacks Consensus Estimate of $6,964 million by 3.5%.
Duke Energy Corporation Price, Consensus and EPS Surprise
Duke Energy Corporation price-consensus-eps-surprise-chart | Duke Energy Corporation Quote
The Regulated electric unit’s revenues were $6,315 million (down 3.1% year over year), representing 94% of total revenues in the quarter.
Revenues from the regulated natural gas business totaled $214 million, down 4% year over year.
The Non-regulated electric and Other segment generated revenues of $192 million, which declined 5% year over year.
Operational Update
Duke Energy’s total operating expenses amounted to $4,909 million in the reported quarter, down 2% year over year. The decline was on account of lower natural gas costs as well as reduced operation, maintenance and other expenses. Also, lower expenses related to fuel used in electric generation and purchases power as well as reduced property and other taxes contributed to reduced operating expenses.
Operating income declined 6% to $1,814 million from $1,929 million in the year-ago quarter.
Interest expenses dropped to $522 million from $572 million in the year-ago quarter.
Segmental Highlights
Electric Utilities & Infrastructure: Adjusted income in the third quarter totaled $1,412 million, which was higher than $1,366 million in the year-ago quarter.
Gas Utilities & Infrastructure: Adjusted loss at this segment totaled $8 million against adjusted income of $26 generated million a year ago.
Commercial Renewables: This segment recorded an adjusted income of $60 million in the quarter under review compared with $40 million in the year-ago quarter.
Other: The segment includes corporate interest expenses not allocated to other business units, results from Duke Energy’s captive insurance company and other investments.
This segment incurred an adjusted loss of $103 million compared with a loss of $124 million in the year-ago quarter.
Financial Condition
As of Sep 30, 2020, Duke Energy had cash & cash equivalents of $308 million, down from $311 million as of Dec 31, 2019. Long-term debt was $56.05 billion at the end of third-quarter 2020 compared with $54.99 billion at 2019-end.
At the end of third quarter, the company had net cash from operating activities of $6,766 million compared with $5,637 million in the year-ago period.
Guidance
Duke Energy narrowed its 2020 adjusted EPS guidance. It currently expects its adjusted earnings per share to be in the range of $5.05-$5.20, compared with the earlier guided range of $5.05-$5.45. The Zacks Consensus Estimate for 2020 earnings of $5.07 per share lies below the mid-point of the company’s updated projected range.
Zacks Rank
Duke Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Utility Releases
Entergy (ETR - Free Report) reported third-quarter 2020 adjusted earnings of $2.44 per share, which surpassed the Zacks Consensus Estimate of $2.42 by 0.8%.
American Electric Power (AEP - Free Report) reported third-quarter 2020 adjusted earnings per share of $1.47, which beat the Zacks Consensus Estimate of $1.46 by 0.7%.
NextEra Energy (NEE - Free Report) reported third-quarter 2020 adjusted earnings of $2.66 per share, which beat the Zacks Consensus Estimate of $2.65 by 0.4%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>