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Duke Energy's (DUK) Q3 Earnings Beat Estimates, Revenues Lag
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Duke Energy Corporation (DUK - Free Report) reported third-quarter 2021 adjusted earnings of $1.88 per share, which surpassed the Zacks Consensus Estimate of $1.81 by 3.9%. The bottom line also improved 0.5% year over year, driven by growth in Electric Utilities and Infrastructure from rate case contributions as well as higher volumes, offset by higher operation & maintenance (O&M) expenses and share dilution.
Including one-time adjustments, the company reported GAAP earnings of $1.79 per share compared with the year-ago figure of $1.74.
Total Revenues
Total operating revenues came in at $6,951 million, which improved 3.4% from $6,721 million a year ago. Yet, the reported figure missed the Zacks Consensus Estimate of $7,017 million by 0.9%.
The Regulated electric unit’s revenues were $6,495 million (up 2.9% year over year), representing 93.4% of total revenues for the quarter.
Revenues from the regulated natural gas business totaled $263 million, up 22.9% year over year.
The Non-regulated Electric and Other segment generated revenues of $193 million, which rose 0.5% year over year.
Duke Energy Corporation Price, Consensus and EPS Surprise
Duke Energy’s total operating expenses amounted to $5,273 million for the reported quarter, up 7.4% year over year. The increase was on account of higher cost of natural gas, increase in O&M as well as other expenses.
Operating income dropped 7% to $1,687 million from $1,814 million in the year-ago quarter.
Interest expenses rose 11.3% to $581 million from $522 million in third-quarter 2020.
For the reported quarter, the average number of customers in its electric utilities increased 2.1% year over year. Total electric sales volumes for the reported quarter improved 2.8% year over year to 72,867 gigawatt-hours.
Segmental Highlights
Electric Utilities & Infrastructure: This segment’s income for the third quarter totaled $1,425 million, higher than $1,381 million reported in the year-ago period.
Gas Utilities & Infrastructure: Adjusted loss in this segment totaled $3 million compared with a loss of $73 million in the year-ago period.
Commercial Renewables: This segment reported an income of $78 million for the quarter under review compared with $60 million in the year-ago period.
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 a loss of $134 million compared with a loss of $103 million in the year-ago quarter.
Financial Condition
As of Sep 30, 2021, Duke Energy had cash & cash equivalents of $548 million, up from $259 million on Dec 31, 2020.
As of Sep 30, 202, long-term debt was $57.92 billion compared with $55.63 billion on Dec 31, 2020.
During the first nine months of 2021, the company generated net cash from operating activities of nearly $7.3 billion compared with $6.8 billion generated in the prior-year period.
Guidance
Duke Energy narrowed its 2021 adjusted EPS guidance. The company now expects to generate adjusted earnings per share in the range of $5.10-$5.30 compared with the prior expectation of $5.00-$5.30. The Zacks Consensus Estimate for 2021 earnings is pegged at $5.22 per share, above the midpoint of the company’s projected range of $5.20.
The company reaffirmed long-term earnings per share growth projection in the range of 5-7% through 2025 from the base of 2021.
FirstEnergy Corporation (FE - Free Report) came up with third-quarter 2021 operating earnings of 82 cents per share, surpassing the Zacks Consensus Estimate of 81 cents by 1.2%.
NextEra Energy, Inc. (NEE - Free Report) reported third-quarter 2021 adjusted earnings of 75 cents per share, which beat the Zacks Consensus Estimate of 72 cents by 4.2%.
DTE Energy Company (DTE - Free Report) reported third-quarter 2021 operating EPS of $1.72, which missed the Zacks Consensus Estimate of $1.83 by 6%.
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Duke Energy's (DUK) Q3 Earnings Beat Estimates, Revenues Lag
Duke Energy Corporation (DUK - Free Report) reported third-quarter 2021 adjusted earnings of $1.88 per share, which surpassed the Zacks Consensus Estimate of $1.81 by 3.9%. The bottom line also improved 0.5% year over year, driven by growth in Electric Utilities and Infrastructure from rate case contributions as well as higher volumes, offset by higher operation & maintenance (O&M) expenses and share dilution.
Including one-time adjustments, the company reported GAAP earnings of $1.79 per share compared with the year-ago figure of $1.74.
Total Revenues
Total operating revenues came in at $6,951 million, which improved 3.4% from $6,721 million a year ago. Yet, the reported figure missed the Zacks Consensus Estimate of $7,017 million by 0.9%.
The Regulated electric unit’s revenues were $6,495 million (up 2.9% year over year), representing 93.4% of total revenues for the quarter.
Revenues from the regulated natural gas business totaled $263 million, up 22.9% year over year.
The Non-regulated Electric and Other segment generated revenues of $193 million, which rose 0.5% year over year.
Duke Energy Corporation Price, Consensus and EPS Surprise
Duke Energy Corporation price-consensus-eps-surprise-chart | Duke Energy Corporation Quote
Highlights of the Release
Duke Energy’s total operating expenses amounted to $5,273 million for the reported quarter, up 7.4% year over year. The increase was on account of higher cost of natural gas, increase in O&M as well as other expenses.
Operating income dropped 7% to $1,687 million from $1,814 million in the year-ago quarter.
Interest expenses rose 11.3% to $581 million from $522 million in third-quarter 2020.
For the reported quarter, the average number of customers in its electric utilities increased 2.1% year over year. Total electric sales volumes for the reported quarter improved 2.8% year over year to 72,867 gigawatt-hours.
Segmental Highlights
Electric Utilities & Infrastructure: This segment’s income for the third quarter totaled $1,425 million, higher than $1,381 million reported in the year-ago period.
Gas Utilities & Infrastructure: Adjusted loss in this segment totaled $3 million compared with a loss of $73 million in the year-ago period.
Commercial Renewables: This segment reported an income of $78 million for the quarter under review compared with $60 million in the year-ago period.
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 a loss of $134 million compared with a loss of $103 million in the year-ago quarter.
Financial Condition
As of Sep 30, 2021, Duke Energy had cash & cash equivalents of $548 million, up from $259 million on Dec 31, 2020.
As of Sep 30, 202, long-term debt was $57.92 billion compared with $55.63 billion on Dec 31, 2020.
During the first nine months of 2021, the company generated net cash from operating activities of nearly $7.3 billion compared with $6.8 billion generated in the prior-year period.
Guidance
Duke Energy narrowed its 2021 adjusted EPS guidance. The company now expects to generate adjusted earnings per share in the range of $5.10-$5.30 compared with the prior expectation of $5.00-$5.30. The Zacks Consensus Estimate for 2021 earnings is pegged at $5.22 per share, above the midpoint of the company’s projected range of $5.20.
The company reaffirmed long-term earnings per share growth projection in the range of 5-7% through 2025 from the base of 2021.
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.
Other Releases
FirstEnergy Corporation (FE - Free Report) came up with third-quarter 2021 operating earnings of 82 cents per share, surpassing the Zacks Consensus Estimate of 81 cents by 1.2%.
NextEra Energy, Inc. (NEE - Free Report) reported third-quarter 2021 adjusted earnings of 75 cents per share, which beat the Zacks Consensus Estimate of 72 cents by 4.2%.
DTE Energy Company (DTE - Free Report) reported third-quarter 2021 operating EPS of $1.72, which missed the Zacks Consensus Estimate of $1.83 by 6%.