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Duke Energy (DUK) Misses on Q1 Earnings, Keeps 2017 View
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Duke Energy Corporation (DUK - Free Report) reported first-quarter 2017 adjusted earnings of $1.04 per share, missing the Zacks Consensus Estimate of $1.06 by 1.9%. Quarterly earnings also declined 8% year over year due to the absence of International Energy that was sold in Dec 2016, and milder winter weather. These were, however, partially offset by Piedmont Natural Gas' earnings contribution and favorable operations and maintenance (O&M) expenses at Electric Utilities and Infrastructure.
Total Revenue
In the first quarter of 2017, the company’s total operating revenue was $5,729 million, up 6.5% from $5,377 million a year ago. Nevertheless, the reported figure missed the Zacks Consensus Estimate of $5,803 million by 1.3%.
The regulated electric unit’s revenues were $4,947 million (down 2.8%), representing approximately 86.4% of the company’s quarterly total revenue. Revenues from the regulated natural gas business were $670 million (up 294.1%). Its commercial renewable revenues were $128, up 12.3% year over year. Other segment generated revenues were $33 million, up 13.8% year over year.
Operational Update
The company’s total operating expenses were $4,303 million in the quarter, up from $4,144 million a year ago. Costs increased on account of higher cost of natural gas, operation, maintenance and other expenses, depreciation and amortization expenses and property as well as other taxes.
Operating income in the quarter increased to $1,437 million from $1,240 million a year ago.
Interest expenses rose to $491 million from $489 million a year ago.
Quarterly Segmental Highlights
Electric Utilities & Infrastructure: Adjusted income in the quarter was $635 million, down from $664 million a year ago. The downside can be attributed to warm winter weather.
Gas Utilities & Infrastructure: Adjusted income of $133 million at this segment demonstrated an improvement from $32 million in the year-ago quarter.
Commercial Renewables: This segment reported adjusted income of $25 million in the quarter compared with $26 million a year ago.
Other: The segment includes corporate interest expenses not allocated to other business units, results from Duke Energy’s captive insurance company and other investments.
Adjusted net expenses were $67 million, up from $62 million in the year-ago quarter.
Duke Energy Corporation Price, Consensus and EPS Surprise
As of Mar 31, 2017, the company had cash & cash equivalents of $878 million, up from $392 million as of Dec 31, 2016. Long-term debt was $47 billion compared with $45.6 billion as of Dec 31, 2016.
In the first quarter, net cash from operating activities was $1,289 million compared with $1,682 million in the year-ago period.
Guidance
The company still expects to report its 2017 adjusted EPS in the range of $4.50−$4.70.
Zacks Rank
Duke Energy presently carries a Zacks Rank #4 (Sell).
Peer Releases
DTE Energy Company (DTE - Free Report) reported first-quarter 2017 operating earnings per share of $1.79, which topped the Zacks Consensus Estimate of $1.57 by 14%. Total revenue came in at $3.24 billion that surpassed the Zacks Consensus Estimate of $2.58 billion by 25.6%. The company has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Entergy Corporation (ETR - Free Report) , a Zacks Rank #3 company, posted first-quarter 2017 operational earnings of 99 cents per share, missing the Zacks Consensus Estimate of $1.06 by 6.6%. Total revenue of $2,588.5 million topped the Zacks Consensus Estimate of $2,566 million by 0.9%.
NextEra Energy, Inc. (NEE - Free Report) is also a Zacks Rank #3 company. It reported first-quarter 2017 adjusted EPS of $1.75 beating the Zacks Consensus Estimate of $1.56 by 12.2%. Operating revenues totaled $3,972 million, which surpassed the Zacks Consensus Estimate of $3,943 million by nearly 0.7%.
Zacks’ Best Private Investment Ideas
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Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
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Duke Energy (DUK) Misses on Q1 Earnings, Keeps 2017 View
Duke Energy Corporation (DUK - Free Report) reported first-quarter 2017 adjusted earnings of $1.04 per share, missing the Zacks Consensus Estimate of $1.06 by 1.9%. Quarterly earnings also declined 8% year over year due to the absence of International Energy that was sold in Dec 2016, and milder winter weather. These were, however, partially offset by Piedmont Natural Gas' earnings contribution and favorable operations and maintenance (O&M) expenses at Electric Utilities and Infrastructure.
Total Revenue
In the first quarter of 2017, the company’s total operating revenue was $5,729 million, up 6.5% from $5,377 million a year ago. Nevertheless, the reported figure missed the Zacks Consensus Estimate of $5,803 million by 1.3%.
The regulated electric unit’s revenues were $4,947 million (down 2.8%), representing approximately 86.4% of the company’s quarterly total revenue. Revenues from the regulated natural gas business were $670 million (up 294.1%). Its commercial renewable revenues were $128, up 12.3% year over year. Other segment generated revenues were $33 million, up 13.8% year over year.
Operational Update
The company’s total operating expenses were $4,303 million in the quarter, up from $4,144 million a year ago. Costs increased on account of higher cost of natural gas, operation, maintenance and other expenses, depreciation and amortization expenses and property as well as other taxes.
Operating income in the quarter increased to $1,437 million from $1,240 million a year ago.
Interest expenses rose to $491 million from $489 million a year ago.
Quarterly Segmental Highlights
Electric Utilities & Infrastructure: Adjusted income in the quarter was $635 million, down from $664 million a year ago. The downside can be attributed to warm winter weather.
Gas Utilities & Infrastructure: Adjusted income of $133 million at this segment demonstrated an improvement from $32 million in the year-ago quarter.
Commercial Renewables: This segment reported adjusted income of $25 million in the quarter compared with $26 million a year ago.
Other: The segment includes corporate interest expenses not allocated to other business units, results from Duke Energy’s captive insurance company and other investments.
Adjusted net expenses were $67 million, up from $62 million in the year-ago quarter.
Duke Energy Corporation Price, Consensus and EPS Surprise
Duke Energy Corporation Price, Consensus and EPS Surprise | Duke Energy Corporation Quote
Financial Condition
As of Mar 31, 2017, the company had cash & cash equivalents of $878 million, up from $392 million as of Dec 31, 2016. Long-term debt was $47 billion compared with $45.6 billion as of Dec 31, 2016.
In the first quarter, net cash from operating activities was $1,289 million compared with $1,682 million in the year-ago period.
Guidance
The company still expects to report its 2017 adjusted EPS in the range of $4.50−$4.70.
Zacks Rank
Duke Energy presently carries a Zacks Rank #4 (Sell).
Peer Releases
DTE Energy Company (DTE - Free Report) reported first-quarter 2017 operating earnings per share of $1.79, which topped the Zacks Consensus Estimate of $1.57 by 14%. Total revenue came in at $3.24 billion that surpassed the Zacks Consensus Estimate of $2.58 billion by 25.6%. The company has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Entergy Corporation (ETR - Free Report) , a Zacks Rank #3 company, posted first-quarter 2017 operational earnings of 99 cents per share, missing the Zacks Consensus Estimate of $1.06 by 6.6%. Total revenue of $2,588.5 million topped the Zacks Consensus Estimate of $2,566 million by 0.9%.
NextEra Energy, Inc. (NEE - Free Report) is also a Zacks Rank #3 company. It reported first-quarter 2017 adjusted EPS of $1.75 beating the Zacks Consensus Estimate of $1.56 by 12.2%. Operating revenues totaled $3,972 million, which surpassed the Zacks Consensus Estimate of $3,943 million by nearly 0.7%.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>