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Duke Energy (DUK) Up 4.4% Since Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Duke Energy Corporation (DUK - Free Report) . Shares have added about 4.4% in the past month, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Duke Energy Misses on Q1 Earnings, Keeps 2017 View
Duke Energy 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.
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.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
At this time, Duke Energy's stock has an average Growth Score of 'C', however its Momentum is doing bit better with an 'A'. The stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for momentum investors than those looking for value and growth.
Outlook
Notably, the stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.
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Duke Energy (DUK) Up 4.4% Since Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Duke Energy Corporation (DUK - Free Report) . Shares have added about 4.4% in the past month, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Duke Energy Misses on Q1 Earnings, Keeps 2017 View
Duke Energy 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.
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.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Duke Energy Corporation Price and Consensus
Duke Energy Corporation Price and Consensus | Duke Energy Corporation Quote
VGM Scores
At this time, Duke Energy's stock has an average Growth Score of 'C', however its Momentum is doing bit better with an 'A'. The stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for momentum investors than those looking for value and growth.
Outlook
Notably, the stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.