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Duke Energy (DUK) to Report Q2 Earnings: What's in Store?

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Duke Energy Corporation (DUK - Free Report) is set to report second-quarter 2021 results on Aug 5, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 1.61%.

Moreover, the bottom line surpassed the Zacks Consensus Estimate in the last four quarters with the average earnings surprise being 2.73%.

Let’s see how things have shaped up prior to this announcement.  

Factors to Consider

During the second quarter, the company’s service territories experienced mixed weather patterns. While in some parts, warmer-than-normal temperature was recorded accompanied by extremely dry conditions, in other parts, colder-than-normal temperature was observed. So, the overall weather pattern is expected to have had a moderate impact on the utility’s quarterly top-line performance.

Duke Energy Corporation Price and EPS Surprise

Duke Energy Corporation Price and EPS Surprise

Duke Energy Corporation price-eps-surprise | Duke Energy Corporation Quote

Customer growth and infrastructure investments across its franchises are expected to have boosted revenues in the second quarter. Further, in Florida, the company received approval of a new multiyear rate plan, which is likely to have bolstered Duke Energy’s revenue performance in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $5.75 billion, indicating 6.1% improvement from the year-ago quarter’s reported figure.

Benefits from earlier base rate increases in North Carolina, Florida, Indiana and Kentucky are expected to have boosted the company’s bottom-line performance in the second quarter. Moreover, recent improvement observed in economic trends is projected to have boosted electric volume during the soon-to-be-reported quarter, thereby favorably contributing to Duke Energy’s earnings.

However, as stated on Duke Energy’s first-quarter earnings call, its second-quarter results are expected to reflect higher operating and maintenance expenses due to the significant COVID mitigation actions taken by the company in 2020. This in turn might have had an adverse impact on its quarterly earnings.

Currently, the Zacks Consensus Estimate for the company’s second-quarter earnings is pegged at $1.12 per share, indicating 3.7% improvement from the year-ago quarter’s reported figure.

Earnings Whispers

Our proven model predicts an earnings beat for Duke Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

Earnings ESP: Duke Energy has an Earnings ESP of +0.15%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Here are some other players from the Utilities sector with the right combination of elements to post an earnings beat in the to-be-reported quarter.

CenterPoint Energy (CNP - Free Report) has an Earnings ESP of +0.68% and holds a Zacks Rank #3.

Consolidated Edison (ED - Free Report) has an Earnings ESP of +1.74% and carries a Zacks Rank #3.

Telephone and Data Systems (TDS - Free Report) has an Earnings ESP of +6.33% and carries a Zacks Rank #3.

 

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