We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Duke Energy (DUK) Tops Q2 Earnings Estimates, View Same
Read MoreHide Full Article
Duke Energy Corporation (DUK - Free Report) reported second-quarter 2016 adjusted earnings of $1.07 per share that came in above the Zacks Consensus Estimate of $1.01 by 5.9%. Quarterly earnings also improved 12.6% year over year owing to higher retail revenues from pricing and rider recoveries, lower expenses, and higher contribution from the North Carolina Eastern Municipal Power Agency (NCEMPA) acquisition.
In the second quarter of 2016, the company’s total operating revenue was $5,484 million, down 1.9% from $5,589 million a year ago. The reported figure was below the Zacks Consensus Estimate of $5,751 million by 4.6%.
The regulated electric unit’s revenues were $4,965 million (down 2.5%), representing approximately 90.5% of the company’s quarterly total revenue. Revenues from the regulated natural gas business were $97 million, up from the year-ago level of $96 million. Its non-regulated electric and other segment generated revenues were $422 million, up 4.7% year over year.
Operational Update
The company’s total operating expenses were $4,344 million in the quarter, down from $4,356 million a year ago. Costs decreased on account of lower fuel expenses in both regulated (12.3% year over year) and non-regulated (30.5%) businesses, and lower cost of natural gas, which were partially offset by higher operation, maintenance and other expenses (up 0.6%) as well as depreciation and amortization expenses (up 2.9%).
Operating income during the quarter decreased to $1,145 million from $1,246 million a year ago.
Interest expense increased to $500 million from $403 million a year ago.
Quarterly Segmental Highlights
Regulated Utilities: Adjusted income in the quarter was $718 million, up from $632 million a year ago. The upside can be attributed to higher pricing and riders, lower expenses and higher wholesale net margins.
International Energy: Adjusted income of $43 million from this segment dropped from $52 million in the year-ago quarter. The decline was due to a higher tax expense and weak results at National Methanol Company.
Commercial Portfolio: This segment reported an adjusted income of $14 million in the quarter compared with $11 million a year ago. The rise was led by increased investments in the Atlantic Coast and Sabal Trail pipelines.
Other: The segment includes corporate interest expenses not allocated to other business units, results from Duke Energy’s captive insurance company, other investments, and income tax levelization adjustments.
Adjusted net expenses were $36 million, down from $37 million in the year-ago quarter.
Financial Condition
As of Jun 30, 2016, the company had cash & cash equivalents of $676 million, down from $857 million as of Dec 31, 2015. Long-term debt was $39.93 billion compared with $37.5 billion as of Dec 31, 2015.
In the first half of 2016, net cash from operating activities was $3,206 million compared with $2,879 million a year ago. The company’s capital expenditure was $1,825 million in the quarter, up from $1,735 million a year ago.
Guidance
The company maintained the 2016 earnings guidance in the range of $4.50 to $4.70 per share.
Zacks Rank
Duke Energy presently holds a Zacks Rank #3 (Hold).
Peer Releases
DTE Energy Company (DTE - Free Report) reported second-quarter 2016 operating earnings per share of 98 cents, beating the Zacks Consensus Estimate of 90 cents by 8.9%. Reported earnings were also up 28.9% from the year-ago figure of 76 cents.
PG&E Corporation’s (PCG - Free Report) adjusted operating earnings per share of 66 cents in the second quarter of 2016 lagged the Zacks Consensus Estimate of 94 cents by 29.8%. Earnings also declined 27.5% from 91 cents reported in the year-ago quarter.
Public Service Enterprise Group Inc. (PEG - Free Report) reported second-quarter 2016 operating earnings of 57 cents per share, in line with both the Zacks Consensus Estimate and with the year-ago figure. On a GAAP basis, quarterly earnings were 37 cents per share, down from 68 cents a year ago.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Duke Energy (DUK) Tops Q2 Earnings Estimates, View Same
Duke Energy Corporation (DUK - Free Report) reported second-quarter 2016 adjusted earnings of $1.07 per share that came in above the Zacks Consensus Estimate of $1.01 by 5.9%. Quarterly earnings also improved 12.6% year over year owing to higher retail revenues from pricing and rider recoveries, lower expenses, and higher contribution from the North Carolina Eastern Municipal Power Agency (NCEMPA) acquisition.
Total Revenue
In the second quarter of 2016, the company’s total operating revenue was $5,484 million, down 1.9% from $5,589 million a year ago. The reported figure was below the Zacks Consensus Estimate of $5,751 million by 4.6%.
The regulated electric unit’s revenues were $4,965 million (down 2.5%), representing approximately 90.5% of the company’s quarterly total revenue. Revenues from the regulated natural gas business were $97 million, up from the year-ago level of $96 million. Its non-regulated electric and other segment generated revenues were $422 million, up 4.7% year over year.
Operational Update
The company’s total operating expenses were $4,344 million in the quarter, down from $4,356 million a year ago. Costs decreased on account of lower fuel expenses in both regulated (12.3% year over year) and non-regulated (30.5%) businesses, and lower cost of natural gas, which were partially offset by higher operation, maintenance and other expenses (up 0.6%) as well as depreciation and amortization expenses (up 2.9%).
Operating income during the quarter decreased to $1,145 million from $1,246 million a year ago.
Interest expense increased to $500 million from $403 million a year ago.
Quarterly Segmental Highlights
Regulated Utilities: Adjusted income in the quarter was $718 million, up from $632 million a year ago. The upside can be attributed to higher pricing and riders, lower expenses and higher wholesale net margins.
International Energy: Adjusted income of $43 million from this segment dropped from $52 million in the year-ago quarter. The decline was due to a higher tax expense and weak results at National Methanol Company.
Commercial Portfolio: This segment reported an adjusted income of $14 million in the quarter compared with $11 million a year ago. The rise was led by increased investments in the Atlantic Coast and Sabal Trail pipelines.
Other: The segment includes corporate interest expenses not allocated to other business units, results from Duke Energy’s captive insurance company, other investments, and income tax levelization adjustments.
Adjusted net expenses were $36 million, down from $37 million in the year-ago quarter.
Financial Condition
As of Jun 30, 2016, the company had cash & cash equivalents of $676 million, down from $857 million as of Dec 31, 2015. Long-term debt was $39.93 billion compared with $37.5 billion as of Dec 31, 2015.
In the first half of 2016, net cash from operating activities was $3,206 million compared with $2,879 million a year ago. The company’s capital expenditure was $1,825 million in the quarter, up from $1,735 million a year ago.
Guidance
The company maintained the 2016 earnings guidance in the range of $4.50 to $4.70 per share.
Zacks Rank
Duke Energy presently holds a Zacks Rank #3 (Hold).
Peer Releases
DTE Energy Company (DTE - Free Report) reported second-quarter 2016 operating earnings per share of 98 cents, beating the Zacks Consensus Estimate of 90 cents by 8.9%. Reported earnings were also up 28.9% from the year-ago figure of 76 cents.
PG&E Corporation’s (PCG - Free Report) adjusted operating earnings per share of 66 cents in the second quarter of 2016 lagged the Zacks Consensus Estimate of 94 cents by 29.8%. Earnings also declined 27.5% from 91 cents reported in the year-ago quarter.
Public Service Enterprise Group Inc. (PEG - Free Report) reported second-quarter 2016 operating earnings of 57 cents per share, in line with both the Zacks Consensus Estimate and with the year-ago figure. On a GAAP basis, quarterly earnings were 37 cents per share, down from 68 cents a year ago.
DUKE ENERGY CP Price, Consensus and EPS Surprise
DUKE ENERGY CP Price, Consensus and EPS Surprise | DUKE ENERGY CP Quote
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>