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Duke Energy's (DUK) Q2 Earnings Beat, Revenues Rise Y/Y
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Duke Energy Corporation (DUK - Free Report) reported second-quarter 2021 adjusted earnings of $1.15 per share, which surpassed the Zacks Consensus Estimate of $1.12 by 2.7%. The bottom line also improved 6.5% year over year, driven by growth in Electric Utilities and Infrastructure from rate case contributions, higher volumes and higher wholesale earnings.
Including one-time adjustments, the company reported GAAP earnings of 96 cents per share against the year-ago quarter’s GAAP loss of $1.13.
Total Revenues
Total operating revenues came in at $5,758 million, which improved 6.2% from $5,421 million a year ago. The reported figure surpassed the Zacks Consensus Estimate of $5,753 million by 0.1%.
Duke Energy Corporation Price, Consensus and EPS Surprise
The Regulated electric unit’s revenues were $5,258 million (up 5.9% year over year), representing 91.3% of total revenues in the quarter.
Revenues from the regulated natural gas business totaled $302 million, up 14.8% year over year.
The Non-regulated Electric and Other segment generated revenues of $198 million, which rose 1.5% year over year.
Operational Update
Duke Energy’s total operating expenses amounted to $4,591 million in the reported quarter, up 8% year over year. The escalation was on account of higher cost of natural gas; operation, maintenance and other expenses as well as increased depreciation and amortization, along with fuel used in electric generation and purchased power.
Operating income dropped 0.7% to $1,169 million from $1,177 million in the year-ago quarter.
Interest expenses rose to $572 million from $554 million in seond-quarter 2020.
Segmental Highlights
Electric Utilities & Infrastructure: This segment’s income in the second quarter totaled $935 million, higher than $753 million reported in the year-ago quarter.
Gas Utilities & Infrastructure: Adjusted income in this segment totaled $29 million, down from $50 million a year ago.
Commercial Renewables: This segment reported income of $47 million in the quarter under review compared with $90 million in the year-ago quarter.
Other: The segment includes corporate interest expenses not allocated to other business units, resulting from Duke Energy’s captive insurance company and other investments.
This segment incurred loss of $113 million compared with loss of $84 million in the year-ago quarter.
Financial Condition
As of Jun 30, 2021, Duke Energy had cash & cash equivalents of $367 million, up from $259 million as of Dec 31, 2020. Long-term debt was $57.41 billion at the end of second-quarter 2021 compared with $55.63 billion at 2020-end.
During the first half of 2021, the company generated net cash from operating activities of $3.87 billion compared with $3.36 billion generated in the prior-year quarter.
Guidance
Duke Energy reaffirmed its 2021 adjusted EPS guidance. The company still expects to generate adjusted earnings per share in the range of $5.00-$5.30.
The Zacks Consensus Estimate for 2021 earnings is pegged at $5.20 per share, above the midpoint of the company’s projected range.
American Electric Power (AEP - Free Report) reported second-quarter 2021 adjusted earnings per share of $1.18, which exceeded the Zacks Consensus Estimate of $1.14 by 3.5%.
NextEra Energy (NEE - Free Report) reported second-quarter 2021 adjusted earnings of 71 cents per share, which beat the Zacks Consensus Estimate of 67 cents by 5.6%.
DTE Energy Company (DTE - Free Report) reported second-quarter 2021 operating earnings per share (EPS) of $1.70, which beat the Zacks Consensus Estimate of $1.44 by 18.1%.
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Duke Energy's (DUK) Q2 Earnings Beat, Revenues Rise Y/Y
Duke Energy Corporation (DUK - Free Report) reported second-quarter 2021 adjusted earnings of $1.15 per share, which surpassed the Zacks Consensus Estimate of $1.12 by 2.7%. The bottom line also improved 6.5% year over year, driven by growth in Electric Utilities and Infrastructure from rate case contributions, higher volumes and higher wholesale earnings.
Including one-time adjustments, the company reported GAAP earnings of 96 cents per share against the year-ago quarter’s GAAP loss of $1.13.
Total Revenues
Total operating revenues came in at $5,758 million, which improved 6.2% from $5,421 million a year ago. The reported figure surpassed the Zacks Consensus Estimate of $5,753 million by 0.1%.
Duke Energy Corporation Price, Consensus and EPS Surprise
Duke Energy Corporation price-consensus-eps-surprise-chart | Duke Energy Corporation Quote
The Regulated electric unit’s revenues were $5,258 million (up 5.9% year over year), representing 91.3% of total revenues in the quarter.
Revenues from the regulated natural gas business totaled $302 million, up 14.8% year over year.
The Non-regulated Electric and Other segment generated revenues of $198 million, which rose 1.5% year over year.
Operational Update
Duke Energy’s total operating expenses amounted to $4,591 million in the reported quarter, up 8% year over year. The escalation was on account of higher cost of natural gas; operation, maintenance and other expenses as well as increased depreciation and amortization, along with fuel used in electric generation and purchased power.
Operating income dropped 0.7% to $1,169 million from $1,177 million in the year-ago quarter.
Interest expenses rose to $572 million from $554 million in seond-quarter 2020.
Segmental Highlights
Electric Utilities & Infrastructure: This segment’s income in the second quarter totaled $935 million, higher than $753 million reported in the year-ago quarter.
Gas Utilities & Infrastructure: Adjusted income in this segment totaled $29 million, down from $50 million a year ago.
Commercial Renewables: This segment reported income of $47 million in the quarter under review compared with $90 million in the year-ago quarter.
Other: The segment includes corporate interest expenses not allocated to other business units, resulting from Duke Energy’s captive insurance company and other investments.
This segment incurred loss of $113 million compared with loss of $84 million in the year-ago quarter.
Financial Condition
As of Jun 30, 2021, Duke Energy had cash & cash equivalents of $367 million, up from $259 million as of Dec 31, 2020. Long-term debt was $57.41 billion at the end of second-quarter 2021 compared with $55.63 billion at 2020-end.
During the first half of 2021, the company generated net cash from operating activities of $3.87 billion compared with $3.36 billion generated in the prior-year quarter.
Guidance
Duke Energy reaffirmed its 2021 adjusted EPS guidance. The company still expects to generate adjusted earnings per share in the range of $5.00-$5.30.
The Zacks Consensus Estimate for 2021 earnings is pegged at $5.20 per share, above the midpoint of the company’s projected range.
Zacks Rank
Duke Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility Releases
American Electric Power (AEP - Free Report) reported second-quarter 2021 adjusted earnings per share of $1.18, which exceeded the Zacks Consensus Estimate of $1.14 by 3.5%.
NextEra Energy (NEE - Free Report) reported second-quarter 2021 adjusted earnings of 71 cents per share, which beat the Zacks Consensus Estimate of 67 cents by 5.6%.
DTE Energy Company (DTE - Free Report) reported second-quarter 2021 operating earnings per share (EPS) of $1.70, which beat the Zacks Consensus Estimate of $1.44 by 18.1%.