Back to top

Analyst Blog

Duke Energy Corporation (DUK - Analyst Report) is set to report fourth quarter and full year 2012 results on Feb 13, 2013. Last quarter it posted a 1.38% positive earnings surprise. Let’s see how things are shaping up prior to this announcement.

Factors to Consider This Quarter

Duke Energy is loaded with a number of project developments, especially in Arizona and California. These developments indicate the company’s commitment to meet electricity needs through advanced and cleaner generation. Given the current pulse in the U.S. market that favors sustainable green generation, we believe these projects would bode well for Duke Energy going forward. Overall, these activities would bring in revenue for the company.

Also, the acquisition of Progress Energy Inc. seems to be a smart move made by the company. It has increased the company’s ability to build new power plants to meet future greenhouse-gas emissions limits. However, the present unfavorable macro backdrop, predominantly fossil-fuel based generation assets, tepid demand for electricity, a sudden change of its CEO and pending regulatory cases have clouded these positives.

Earnings Whispers?

Our proven model does not conclusively show that Duke Energy is likely to beat earnings this quarter. This is because a stock needs to have both a positive earnings Expected Surprise Prediction (ESP) (Read: Zacks Earnings ESP: A Better Method) and a Zacks Rank of #1, 2 or 3 for this to happen. This is not the case here as you will see below.

Negative Zacks ESP:  This is because the Most Accurate estimate stands at 64 cents per share while the Zacks Consensus Estimate is at 65 cents per share. That is a difference of -1.54%.

Zacks #3 Rank (Hold): Duke Energy’s Zacks Rank #3 (Hold) when combined with a negative earnings ESP makes surprise prediction difficult.

Other Stocks to Consider

Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

Ormat Technologies Inc. (ORA - Snapshot Report) has earnings ESP of +50% and carries a Zacks Rank #2 (Buy).

Consolidated Edison Inc. (ED - Analyst Report) has earnings ESP of +1.92% and carries a Zacks Rank #3 (Hold).

Entergy Corporation (ETR - Analyst Report) has earnings ESP of +7.80% and carries a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SIGNET JEWE… SIG 116.37 +7.72%
INSITE VISI… INSV 0.30 +7.11%
CHYRONHEGO… CHYR 2.72 +5.84%
US SILICA H… SLCA 70.72 +4.00%
MALLINCKROD… MNK 80.11 +2.32%