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Duke Energy (DUK) Q3 Earnings Lag Estimates, Revenues Rise Y/Y
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Duke Energy Corporation (DUK - Free Report) reported third-quarter 2022 adjusted earnings of $1.78 per share, which missed the Zacks Consensus Estimate of $1.83 by 2.7%. The bottom line also dropped 5.3% year over year.
This year-over-year decline is attributable to lower commercial renewable projects placed in service along with higher depreciation and amortization expenses, lower returns on investments and higher interest expenses.
Including one-time adjustments, the company reported GAAP earnings of $1.81 per share compared with the year-ago quarter’s earnings of $1.79.
Total Revenues
Total operating revenues came in at $7,968 million, which improved 14.6% from $6,951 million a year ago. The reported top line also surpassed the Zacks Consensus Estimate of $7,192.9 million by 10.8%.
The Regulated electric unit’s revenues were $7,374 million (up 13.5% year over year), representing 92.5% of total revenues for the quarter.
Revenues from the Regulated natural gas business totaled $397 million, up 50.9% year over year.
The Non-regulated Electric and Other segment generated revenues of $197 million, which increased 2.1% year over year.
Duke Energy Corporation Price, Consensus and EPS Surprise
Duke Energy’s total operating expenses amounted to $5,950 million in the reported quarter, up 12.8% year over year. The increase was driven by the higher cost of fuel used in electric generation and purchased power, the cost of natural gas, depreciation and amortization expenses and the cost of property and other taxes.
Also, higher operation maintenance and other expenses resulted in an increase in operating expenses.
The operating income improved 19.9% to $2,024 million from $1,687 million in the year-ago quarter.
Interest expenses rose to $621 million from $581 million in the third quarter of 2021.
For the reported quarter, the average number of customers in its electric utilities increased 1.6% year over year. Total electric sales volumes for the reported quarter went up 1.2% year over year to 73,725 gigawatt-hours.
Segmental Highlights
Electric Utilities & Infrastructure: This segment’s adjusted earnings for the third quarter totaled $1,540 million, up from $1,489 million in the third quarter of 2021.
Gas Utilities & Infrastructure: Earnings generated from this segment totaled $4 million compared with $5 million in the year-ago period.
Commercial Renewables: This segment reported a loss of $2 million for the quarter under review against the segment income of $78 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 $186 million compared with a loss of $127 million in the year-ago quarter.
Financial Condition
As of Sep 30, 2022, Duke Energy had cash & cash equivalents of $453 million, up from $343 million on Dec 31, 2021.
As of Sep 30, 2022, the long-term debt was $66.06 billion compared with $60.45 billion on Dec 31, 2021.
During the first nine months of 2022, the company generated net cash from operating activities of $5.19 billion compared with $7.23 billion generated in the first nine months of 2021.
Guidance
Duke Energy updated its 2022 adjusted earnings per share (EPS) guidance. The company now expects to generate adjusted EPS in the range of $5.20-$5.30 compared with the prior guidance range of $5.30-$5.60.
The Zacks Consensus Estimate for 2022 earnings, pegged at $5.44 per share, is higher than the midpoint of the company’s projected range.
DUK also extended its long-term EPS growth expectation in the range of 5-7% from 2026 to 2027.
The company introduced its guidance for 2023. It expects the EPS in the range of $5.55-$5.75 for 2023.
The Zacks Consensus Estimate for 2023 earnings, pegged at $5.77 per share, is higher than the midpoint of the company’s projected range.
Edison International (EIX - Free Report) reported third-quarter 2022 adjusted earnings of $1.48 per share, which came in line with the Zacks Consensus Estimate. However, the bottom declined 12.4% from $1.69 in the year-ago quarter.
Edison International's third-quarter revenues totaled $5,228 million, which surpassed the Zacks Consensus Estimate of $4,988 million by 4.8%. However, the top line declined 1.3% from the year-ago quarter’s $5,299 million.
American Electric Power Company, Inc. (AEP - Free Report) reported third-quarter 2022 operating EPS of $1.62, which beat the Zacks Consensus Estimate of $1.57 by 3.2%. The bottom line also improved by 13.3% from $1.43 per share in the year-ago quarter.
American Electric’s third-quarter revenues of $5,486.9 million beat the Zacks Consensus Estimate of $4,985.2 million by 10.1%. The reported figure also improved by 21.3% from the year-ago quarter’s $4,522.6 million.
DTE Energy Company (DTE - Free Report) reported third-quarter 2022 operating EPS of $1.60, which surpassed the Zacks Consensus Estimate of $1.58 by 1.3%. However, the bottom line decreased 7% from the year-ago quarter’s $1.72 per share.
The operating net income of DTE in the reported quarter totaled $311 million compared with $334 million in the year-ago quarter.
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Duke Energy (DUK) Q3 Earnings Lag Estimates, Revenues Rise Y/Y
Duke Energy Corporation (DUK - Free Report) reported third-quarter 2022 adjusted earnings of $1.78 per share, which missed the Zacks Consensus Estimate of $1.83 by 2.7%. The bottom line also dropped 5.3% year over year.
This year-over-year decline is attributable to lower commercial renewable projects placed in service along with higher depreciation and amortization expenses, lower returns on investments and higher interest expenses.
Including one-time adjustments, the company reported GAAP earnings of $1.81 per share compared with the year-ago quarter’s earnings of $1.79.
Total Revenues
Total operating revenues came in at $7,968 million, which improved 14.6% from $6,951 million a year ago. The reported top line also surpassed the Zacks Consensus Estimate of $7,192.9 million by 10.8%.
The Regulated electric unit’s revenues were $7,374 million (up 13.5% year over year), representing 92.5% of total revenues for the quarter.
Revenues from the Regulated natural gas business totaled $397 million, up 50.9% year over year.
The Non-regulated Electric and Other segment generated revenues of $197 million, which increased 2.1% 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 $5,950 million in the reported quarter, up 12.8% year over year. The increase was driven by the higher cost of fuel used in electric generation and purchased power, the cost of natural gas, depreciation and amortization expenses and the cost of property and other taxes.
Also, higher operation maintenance and other expenses resulted in an increase in operating expenses.
The operating income improved 19.9% to $2,024 million from $1,687 million in the year-ago quarter.
Interest expenses rose to $621 million from $581 million in the third quarter of 2021.
For the reported quarter, the average number of customers in its electric utilities increased 1.6% year over year. Total electric sales volumes for the reported quarter went up 1.2% year over year to 73,725 gigawatt-hours.
Segmental Highlights
Electric Utilities & Infrastructure: This segment’s adjusted earnings for the third quarter totaled $1,540 million, up from $1,489 million in the third quarter of 2021.
Gas Utilities & Infrastructure: Earnings generated from this segment totaled $4 million compared with $5 million in the year-ago period.
Commercial Renewables: This segment reported a loss of $2 million for the quarter under review against the segment income of $78 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 $186 million compared with a loss of $127 million in the year-ago quarter.
Financial Condition
As of Sep 30, 2022, Duke Energy had cash & cash equivalents of $453 million, up from $343 million on Dec 31, 2021.
As of Sep 30, 2022, the long-term debt was $66.06 billion compared with $60.45 billion on Dec 31, 2021.
During the first nine months of 2022, the company generated net cash from operating activities of $5.19 billion compared with $7.23 billion generated in the first nine months of 2021.
Guidance
Duke Energy updated its 2022 adjusted earnings per share (EPS) guidance. The company now expects to generate adjusted EPS in the range of $5.20-$5.30 compared with the prior guidance range of $5.30-$5.60.
The Zacks Consensus Estimate for 2022 earnings, pegged at $5.44 per share, is higher than the midpoint of the company’s projected range.
DUK also extended its long-term EPS growth expectation in the range of 5-7% from 2026 to 2027.
The company introduced its guidance for 2023. It expects the EPS in the range of $5.55-$5.75 for 2023.
The Zacks Consensus Estimate for 2023 earnings, pegged at $5.77 per share, is higher than 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
Edison International (EIX - Free Report) reported third-quarter 2022 adjusted earnings of $1.48 per share, which came in line with the Zacks Consensus Estimate. However, the bottom declined 12.4% from $1.69 in the year-ago quarter.
Edison International's third-quarter revenues totaled $5,228 million, which surpassed the Zacks Consensus Estimate of $4,988 million by 4.8%. However, the top line declined 1.3% from the year-ago quarter’s $5,299 million.
American Electric Power Company, Inc. (AEP - Free Report) reported third-quarter 2022 operating EPS of $1.62, which beat the Zacks Consensus Estimate of $1.57 by 3.2%. The bottom line also improved by 13.3% from $1.43 per share in the year-ago quarter.
American Electric’s third-quarter revenues of $5,486.9 million beat the Zacks Consensus Estimate of $4,985.2 million by 10.1%. The reported figure also improved by 21.3% from the year-ago quarter’s $4,522.6 million.
DTE Energy Company (DTE - Free Report) reported third-quarter 2022 operating EPS of $1.60, which surpassed the Zacks Consensus Estimate of $1.58 by 1.3%. However, the bottom line decreased 7% from the year-ago quarter’s $1.72 per share.
The operating net income of DTE in the reported quarter totaled $311 million compared with $334 million in the year-ago quarter.