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Duke Energy (DUK) Q4 Earnings Top Estimates, Revenues Rise Y/Y
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Duke Energy Corporation (DUK - Free Report) reported fourth-quarter 2022 adjusted earnings of $1.11 per share, which surpassed the Zacks Consensus Estimate of $1.06 by 4.7%. The bottom line also improved 26.1% year over year.
This year-over-year improvement can be attributed to higher volumes, lower operating and maintenance expense, favorable weather, favorable riders and other retail margin.
Including one-time adjustments, the company reported GAAP loss of 71 cents per share against the year-ago quarter’s earnings of 93 cents.
Adjusted earnings per share (EPS) in 2022 were $5.27, up 5.6% from $4.99 per share in the year-ago period. The full-year earnings missed the Zacks Consensus Estimate of $5.28 per share.
Duke Energy Corporation Price, Consensus and EPS Surprise
Total operating revenues came in at $7,351 million, which improved 20.2% from $6,117 million in the year-ago period. The reported top line also surpassed the Zacks Consensus Estimate of $6,608 million by 11.2%.
The Regulated electric unit’s operating revenues were $6,378 million (up 19.3% year over year), contributing 86.8% to the quarter’s total revenues. Revenues from the Regulated natural gas business totaled $900 million, up 12.2% year over year.
The Non-regulated Electric and Other segment generated revenues of $93 million, which dropped 3.9% year over year.
In 2022, total revenues were $28.77 billion, up 16.8% from 2021’s reported figure. The full-year revenues also beat the Zacks Consensus Estimate of $28.39 billion.
Highlights of the Release
Duke Energy’s total operating expenses amounted to $5,987 million in the reported quarter, up 19.5% year over year. The increase was driven by the higher cost of fuel used in electric generation and purchased power, the cost of natural gas, depreciation and amortization expenses and the cost of property and other taxes.
Also, higher impairment and other charges resulted in an increase in operating expenses.
The operating income improved 23.3% to $1,369 million from $1,110 million recorded in the year-ago quarter.
Interest expenses rose to $679 million from $572 million, recorded in the fourth quarter of 2021.
For the reported quarter, the average number of customers in its Electric Utilities increased 1.6% year over year. Total electric sales volumes for the reported quarter went up 4.8% year over year to 61,235 gigawatt-hours.
Segmental Highlights
Electric Utilities & Infrastructure: This segment’s earnings for the fourth quarter totaled $811 million, up from $670 million in the fourth quarter of 2021.
Gas Utilities & Infrastructure: Earnings generated from this segment totaled $191 million compared with $137 million in the year-ago period.
Other: The segment includes corporate interest expenses not allocated to other business units, resulting from Duke Energy’s captive insurance company and other investments.
This segment incurred an adjusted loss of $133 million compared with a loss of $122 million in the year-ago quarter.
Financial Condition
As of Dec 31, 2022, Duke Energy had cash & cash equivalents of $409 million, up from $343 million on Dec 31, 2021.
As of Dec 31, 2022, the long-term debt was $67.06 billion compared with $60.45 billion on Dec 31, 2021.
During 2022, the company generated net cash from operating activities of $5.93 billion compared with $8.29 billion in 2021.
Guidance
Duke Energy reaffirmed its 2023 adjusted EPS guidance. The company still expects to generate adjusted EPS in the range of $5.55-$5.75. The Zacks Consensus Estimate for 2022 earnings, pegged at $5.63 per share, is lower than the midpoint of the company’s projected range.
DUK now projects long-term EPS growth expectation in the range of 5-7% through 2027.
Xcel Energy Inc. (XEL - Free Report) posted fourth-quarter 2022 operating earnings of 69 cents per share, which were on par with the Zacks Consensus Estimate. The bottom line improved 18.9% from the year-ago figure of 58 cents.
Xcel Energy’s fourth-quarter revenues of $4,053 million beat the Zacks Consensus Estimate of $3,537 million by 14.6%. The same improved by 20.8% from the year-ago quarter’s $3,355 million.
NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2022 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 50 cents by 2%. The bottom line was also up 24.4% from the prior-year quarter.
For the fourth quarter, NextEra’s operating revenues were $6,164 million, which surpassed the Zacks Consensus Estimate of $5,743 million by 7.3%. The top line improved 22.2% year over year.
Dominion Energy Inc. (D - Free Report) reported fourth-quarter 2022 operating earnings of $1.06 per share, which surpassed the Zacks Consensus Estimate of $1.03 by 2.9%. Quarterly earnings were within the company’s guided range of 98 cents-$1.13 per share.
Dominion Energy’s total revenues were $4,913 million, which surpassed the Zacks Consensus Estimate of $4,196 million by 17.1%. Revenues improved by 26.6% from $3,880 million in the year-ago quarter.
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Duke Energy (DUK) Q4 Earnings Top Estimates, Revenues Rise Y/Y
Duke Energy Corporation (DUK - Free Report) reported fourth-quarter 2022 adjusted earnings of $1.11 per share, which surpassed the Zacks Consensus Estimate of $1.06 by 4.7%. The bottom line also improved 26.1% year over year.
This year-over-year improvement can be attributed to higher volumes, lower operating and maintenance expense, favorable weather, favorable riders and other retail margin.
Including one-time adjustments, the company reported GAAP loss of 71 cents per share against the year-ago quarter’s earnings of 93 cents.
Adjusted earnings per share (EPS) in 2022 were $5.27, up 5.6% from $4.99 per share in the year-ago period. The full-year earnings missed the Zacks Consensus Estimate of $5.28 per share.
Duke Energy Corporation Price, Consensus and EPS Surprise
Duke Energy Corporation price-consensus-eps-surprise-chart | Duke Energy Corporation Quote
Total Revenues
Total operating revenues came in at $7,351 million, which improved 20.2% from $6,117 million in the year-ago period. The reported top line also surpassed the Zacks Consensus Estimate of $6,608 million by 11.2%.
The Regulated electric unit’s operating revenues were $6,378 million (up 19.3% year over year), contributing 86.8% to the quarter’s total revenues. Revenues from the Regulated natural gas business totaled $900 million, up 12.2% year over year.
The Non-regulated Electric and Other segment generated revenues of $93 million, which dropped 3.9% year over year.
In 2022, total revenues were $28.77 billion, up 16.8% from 2021’s reported figure. The full-year revenues also beat the Zacks Consensus Estimate of $28.39 billion.
Highlights of the Release
Duke Energy’s total operating expenses amounted to $5,987 million in the reported quarter, up 19.5% year over year. The increase was driven by the higher cost of fuel used in electric generation and purchased power, the cost of natural gas, depreciation and amortization expenses and the cost of property and other taxes.
Also, higher impairment and other charges resulted in an increase in operating expenses.
The operating income improved 23.3% to $1,369 million from $1,110 million recorded in the year-ago quarter.
Interest expenses rose to $679 million from $572 million, recorded in the fourth quarter of 2021.
For the reported quarter, the average number of customers in its Electric Utilities increased 1.6% year over year. Total electric sales volumes for the reported quarter went up 4.8% year over year to 61,235 gigawatt-hours.
Segmental Highlights
Electric Utilities & Infrastructure: This segment’s earnings for the fourth quarter totaled $811 million, up from $670 million in the fourth quarter of 2021.
Gas Utilities & Infrastructure: Earnings generated from this segment totaled $191 million compared with $137 million in the year-ago period.
Other: The segment includes corporate interest expenses not allocated to other business units, resulting from Duke Energy’s captive insurance company and other investments.
This segment incurred an adjusted loss of $133 million compared with a loss of $122 million in the year-ago quarter.
Financial Condition
As of Dec 31, 2022, Duke Energy had cash & cash equivalents of $409 million, up from $343 million on Dec 31, 2021.
As of Dec 31, 2022, the long-term debt was $67.06 billion compared with $60.45 billion on Dec 31, 2021.
During 2022, the company generated net cash from operating activities of $5.93 billion compared with $8.29 billion in 2021.
Guidance
Duke Energy reaffirmed its 2023 adjusted EPS guidance. The company still expects to generate adjusted EPS in the range of $5.55-$5.75. The Zacks Consensus Estimate for 2022 earnings, pegged at $5.63 per share, is lower than the midpoint of the company’s projected range.
DUK now projects long-term EPS growth expectation in the range of 5-7% through 2027.
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.
Recent Utility Releases
Xcel Energy Inc. (XEL - Free Report) posted fourth-quarter 2022 operating earnings of 69 cents per share, which were on par with the Zacks Consensus Estimate. The bottom line improved 18.9% from the year-ago figure of 58 cents.
Xcel Energy’s fourth-quarter revenues of $4,053 million beat the Zacks Consensus Estimate of $3,537 million by 14.6%. The same improved by 20.8% from the year-ago quarter’s $3,355 million.
NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2022 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 50 cents by 2%. The bottom line was also up 24.4% from the prior-year quarter.
For the fourth quarter, NextEra’s operating revenues were $6,164 million, which surpassed the Zacks Consensus Estimate of $5,743 million by 7.3%. The top line improved 22.2% year over year.
Dominion Energy Inc. (D - Free Report) reported fourth-quarter 2022 operating earnings of $1.06 per share, which surpassed the Zacks Consensus Estimate of $1.03 by 2.9%. Quarterly earnings were within the company’s guided range of 98 cents-$1.13 per share.
Dominion Energy’s total revenues were $4,913 million, which surpassed the Zacks Consensus Estimate of $4,196 million by 17.1%. Revenues improved by 26.6% from $3,880 million in the year-ago quarter.