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) Beats on Q4 Earnings, Issues 18' EPS View
Read MoreHide Full Article
Duke Energy Corporation (DUK - Free Report) reported fourth-quarter 2017 adjusted earnings of 94 cents per share, beating the Zacks Consensus Estimate of 91 cents by 3.3%.
Earnings also improved 16% year over year driven by disciplined cost management and favorable weather conditions.
Duke Energy Corporation Price, Consensus and EPS Surprise
GAAP earnings were $1.00 in the fourth quarter, against loss of 33 cents in the prior-year quarter.
For 2017, the company reported adjusted earnings of $4.57 per share, beating the Zacks Consensus Estimate by a penny. The full-year earnings however dropped 2.6% from a year ago.
Total Revenues
In 2017, the company’s total operating revenues were $23.57 billion, up 3.6% from $22.74 billion a year ago. The reported figure however missed the Zacks Consensus Estimate of $23.82 billion.
The regulated electric unit’s revenues were $21.18 billion (down 0.2%), representing approximately 90% of total revenues in 2017.
Revenues from the regulated natural gas business totaled $1.73 billion (up 100.9%).
Non-regulated and Other segment generated revenues of $0.65 billion, down 0.8% year over year.
Operational Update
The company’s total operating expenses were $17.81 billion in 2017, up from $17.43 billion a year ago. Costs increased on higher cost of natural gas, depreciation and amortization expenses, property and other taxes as well as impairment charges. Also, costs related to fuel used in electric generation and purchased power led to higher operating expenses.
Operating income in 2017 increased 8.2% to $5.78 billion from $5.34 billion a year ago.
Interest expenses rose to $1.99 billion from $1.92 billion a year ago.
Quarterly Segmental Highlights
Electric Utilities & Infrastructure: Adjusted income in the fourth quarter was $609 million, up from $483 million a year ago. The upside was driven by favorable weather as well as lower operating and maintenance expenses.
Gas Utilities & Infrastructure: Adjusted income of $114 million at this segment demonstrated an improvement from $89 million in the year-ago quarter. The improvement was driven by customer growth and increased integrity management investments at Piedmont as well as higher earnings from increased investment in the Atlantic Coast Pipeline.
Commercial Renewables: This segment reported adjusted income of $15 million in the quarter compared with $10 million a year ago, courtesy of a new wind project brought on-line in late 2016 and improved wind resources.
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 $82 million, up from $57 million in the year-ago quarter.
Financial Condition
As of Dec 31, 2017, the company had cash & cash equivalents of $358 million, down from $392 million as of Dec 31, 2016. Long-term debt was $49 billion at the end of 2017, compared with $45.6 billion at 2016-end.
In 2017, net cash from operating activities was $6,634 million, compared with $6,817 million in the prior year.
Guidance
The company issued its earnings expectation for 2018. It expects adjusted earnings per share in the range of $4.55-$4.85.
CenterPoint Energy has surpassed the Zacks Consensus Estimate for earnings in the trailing four quarters, the average beat being 6.42%. It boasts a solid long-term EPS growth of 6%.
Recent Peer Releases
PG&E Corporation’s (PCG - Free Report) adjusted operating earnings per share of 63 cents in fourth-quarter 2017 missed the Zacks Consensus Estimate of 69 cents by 8.7%.
NextEra Energy (NEE - Free Report) reported fourth-quarter 2017 adjusted earnings per share of $1.25, lagging the Zacks Consensus Estimate of $1.31 by 4.6%.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Image: Bigstock
Duke Energy (DUK) Beats on Q4 Earnings, Issues 18' EPS View
Duke Energy Corporation (DUK - Free Report) reported fourth-quarter 2017 adjusted earnings of 94 cents per share, beating the Zacks Consensus Estimate of 91 cents by 3.3%.
Earnings also improved 16% year over year driven by disciplined cost management and favorable weather conditions.
Duke Energy Corporation Price, Consensus and EPS Surprise
Duke Energy Corporation Price, Consensus and EPS Surprise | Duke Energy Corporation Quote
GAAP earnings were $1.00 in the fourth quarter, against loss of 33 cents in the prior-year quarter.
For 2017, the company reported adjusted earnings of $4.57 per share, beating the Zacks Consensus Estimate by a penny. The full-year earnings however dropped 2.6% from a year ago.
Total Revenues
In 2017, the company’s total operating revenues were $23.57 billion, up 3.6% from $22.74 billion a year ago. The reported figure however missed the Zacks Consensus Estimate of $23.82 billion.
The regulated electric unit’s revenues were $21.18 billion (down 0.2%), representing approximately 90% of total revenues in 2017.
Revenues from the regulated natural gas business totaled $1.73 billion (up 100.9%).
Non-regulated and Other segment generated revenues of $0.65 billion, down 0.8% year over year.
Operational Update
The company’s total operating expenses were $17.81 billion in 2017, up from $17.43 billion a year ago. Costs increased on higher cost of natural gas, depreciation and amortization expenses, property and other taxes as well as impairment charges. Also, costs related to fuel used in electric generation and purchased power led to higher operating expenses.
Operating income in 2017 increased 8.2% to $5.78 billion from $5.34 billion a year ago.
Interest expenses rose to $1.99 billion from $1.92 billion a year ago.
Quarterly Segmental Highlights
Electric Utilities & Infrastructure: Adjusted income in the fourth quarter was $609 million, up from $483 million a year ago. The upside was driven by favorable weather as well as lower operating and maintenance expenses.
Gas Utilities & Infrastructure: Adjusted income of $114 million at this segment demonstrated an improvement from $89 million in the year-ago quarter. The improvement was driven by customer growth and increased integrity management investments at Piedmont as well as higher earnings from increased investment in the Atlantic Coast Pipeline.
Commercial Renewables: This segment reported adjusted income of $15 million in the quarter compared with $10 million a year ago, courtesy of a new wind project brought on-line in late 2016 and improved wind resources.
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 $82 million, up from $57 million in the year-ago quarter.
Financial Condition
As of Dec 31, 2017, the company had cash & cash equivalents of $358 million, down from $392 million as of Dec 31, 2016. Long-term debt was $49 billion at the end of 2017, compared with $45.6 billion at 2016-end.
In 2017, net cash from operating activities was $6,634 million, compared with $6,817 million in the prior year.
Guidance
The company issued its earnings expectation for 2018. It expects adjusted earnings per share in the range of $4.55-$4.85.
Zacks Rank & Key Pick
Duke Energy carries a Zacks Rank #4 (Sell). A better-ranked stock in the same space is CenterPoint Energy, Inc. (CNP - Free Report) , with a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CenterPoint Energy has surpassed the Zacks Consensus Estimate for earnings in the trailing four quarters, the average beat being 6.42%. It boasts a solid long-term EPS growth of 6%.
Recent Peer Releases
PG&E Corporation’s (PCG - Free Report) adjusted operating earnings per share of 63 cents in fourth-quarter 2017 missed the Zacks Consensus Estimate of 69 cents by 8.7%.
NextEra Energy (NEE - Free Report) reported fourth-quarter 2017 adjusted earnings per share of $1.25, lagging the Zacks Consensus Estimate of $1.31 by 4.6%.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Download the new report now>>