Back to top

Image: Bigstock

Duke Energy (DUK) to Report Q2 Earnings: Is a Beat in Store?

Read MoreHide Full Article

Duke Energy Corporation (DUK - Free Report) is set to report second-quarter 2018 results on Aug 2, before the opening bell.

In the last reported quarter, the company delivered a positive earnings surprise of 11.30%. Also, it surpassed the Zacks Consensus Estimate in three of the past four quarters, the average beat being 3.89%.

Let’s see how things are shaping up prior to this announcement.

Why a Likely Positive Surprise?

Our proven model shows that Duke Energy is likely to beat estimates this quarter. That is because it has the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen.

Earnings ESP: Duke Energy has an Earnings ESP of +0.52%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3, which along with a positive Earnings ESP indicates a positive surprise prediction.

Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into earnings announcements.

Duke Energy Corporation Price and EPS Surprise

 

Duke Energy Corporation Price and EPS Surprise | Duke Energy Corporation Quote

Factors at Play

Across most of the second quarter, the company’s service territories witnessed warmer-than-normal temperature. This is likely to result in higher household expenditure on cooling and, in turn, is likely to boost revenues for this electricity provider.  Evidently, the Zacks Consensus Estimate for Duke Energy’s second-quarter revenues is anticipated to rise 0.6% to $5.59 billion.

At the beginning of the second quarter, Duke Energy received a positive order from Kentucky Public Service Commission regarding its electric base rate case. The approval is expected to allow the company recover environmental expenditures. This sanction for increasing the rate base can be expected to boost the company’s quarterly results. In line with this, the Zacks Consensus Estimate for Duke Energy’s second-quarter earnings pegged at $1.03 reflects an annual improvement of 2%.

Also during the quarter, the company offered $38 million in annual tax savings on electric and natural gas bills to its customers in Ohio and Kentucky. In this context, we may expect to see customer growth in the upcoming quarterly results, since lower bills attract more customers.

Stocks That Warrant a Look

Here are some companies from the Utility sector you may want to consider as our model shows that these have the right combination of elements to post earnings beat this quarter:

CenterPoint Energy (CNP - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank #2. It is expected to report second-quarter 2018 results on Aug 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Alliant Energy (LNT - Free Report) has an Earnings ESP of +1.10% and carries a Zacks Rank #2. It is slated to report second-quarter results on Aug 2.

Ameren Corporation (AEE - Free Report) has an Earnings ESP of +1.69% and carries a Zacks Rank #2. It is slated to report second-quarter results on Aug 3.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

Published in