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

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Duke Energy Corporation (DUK - Free Report) is slated to report second-quarter 2022 results on Aug 4, before the opening bell.

In the last reported quarter, the company delivered a negative earnings surprise of 2.99%. However, Duke Energy has a trailing four-quarter earnings surprise of 0.89%, on average.

Factors to Note

In the second quarter, DUK’s service territories experienced mixed weather patterns. While some parts had warmer-than-normal temperatures accompanied by extreme drought conditions, in other parts, colder-than-normal temperatures prevailed. Thus, the overall weather pattern might have a moderate impact on the utility’s second-quarter top line.

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, coupled with positive rate case outcomes across various regions, is anticipated to have favorably impacted Duke Energy’s second-quarter revenues.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $6.02 billion, suggesting growth of 4.6% from the year-ago quarter.

From the cost perspective, the company’s constant efforts to reduce operations and maintenance costs and achieve cost savings are expected to have positively impacted the bottom line of the company.

However, parts of Duke Energy’s service territories experienced some wildfire activities in the second quarter, thereby causing outages and possible damage to DUK’s infrastructure. This must have pushed up DUK’s quarterly expenses to restore power and repair its infrastructure, thereby dampening the bottom line in the second quarter.

The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.10 per share, indicating a decline of 4.4% from the prior-year reported figure.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Duke Energy this time. 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. However, that is not the case here.

The company has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are three Utilities you may want to consider as these have the right combination of elements to post an earnings beat this season:

WEC Energy Group (WEC - Free Report) has an Earnings ESP of +0.08% and a Zacks Rank #2. The Zacks Consensus Estimate for WEC Energy’s second-quarter earnings is pegged at 86 cents per share, suggesting a decline of 1.2% from the year-ago quarter.

The Zacks Consensus Estimate for WEC’s second-quarter sales is pegged at $1.74 billion, indicating growth of 3.9% from the prior-year reported figure.

Consolidated Edison (ED - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank #3. The Zacks Consensus Estimate for its second-quarter earnings is pegged at 58 cents per share, indicating growth of 9.4% from the prior-year reported figure.

Consolidated Edison boasts a long-term earnings growth rate of 2%. The Zacks Consensus Estimate for ED’s second-quarter sales is pegged at $3.14 billion, suggesting growth of 5.5% from the prior-year reported figure.

Atmos Energy (ATO - Free Report) has an Earnings ESP of +1.35% and a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter earnings, pegged at 86 cents per share, implies an increase of 10.3% from the prior-year quarter’s reported figure.

ATO boasts a long-term earnings growth rate of 7.4%. Atmos Energy has a four-quarter earnings surprise of 1.14%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.