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Duke Energy (DUK) Q1 Earnings Miss Estimates, Revenues Rise Y/Y
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Duke Energy Corporation (DUK - Free Report) reported first-quarter 2023 adjusted earnings of $1.20 per share, which lagged the Zacks Consensus Estimate of $1.28 by 6.3%. The bottom line also declined 6.9% year over year.
Including one-time adjustments, the company reported a GAAP loss of $1.01 per share compared to the year-ago quarter’s earnings of $1.08 per share.
Total Revenues
Total operating revenues came in at $7,276 million, which improved 3.8% from $7,011 million in the year-ago period. The reported top line also surpassed the Zacks Consensus Estimate of $7,197 million by 1.1%.
The Regulated electric unit’s operating revenues were $6,324 million (up 6.6% year over year), contributing 86.9% to the quarter’s total revenues. Revenues from the Regulated natural gas business totaled $882 million, down 11.9% year over year.
The Non-regulated Electric and Other segment generated revenues of $70 million, which dropped 7.9% year over year.
Duke Energy Corporation Price, Consensus and EPS Surprise
Duke Energy’s total operating expenses amounted to $5,609 million in the reported quarter, down 1.6% year over year. The decrease was largely driven by lower operation, maintenance and other expenses.
The operating income improved 27.4% to $1,674 million from $1,314 million recorded in the year-ago quarter.
Interest expenses rose to $720 million from $569 million recorded in the first quarter of 2022.
For the reported quarter, the average number of customers in its Electric Utilities increased 1.5% year over year. Total electric sales volumes for the reported quarter went down 9.5% year over year to 58,246 gigawatt-hours.
Segmental Highlights
Electric Utilities & Infrastructure: This segment’s earnings for the first quarter totaled $791 million, down from $896 million in the first quarter of 2022.
Gas Utilities & Infrastructure: Earnings generated from this segment totaled $287 million compared with $254 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 an adjusted loss of $168 million compared with a loss of $171 million in the year-ago quarter.
Financial Condition
As of Mar 31, 2023, Duke Energy had cash & cash equivalents of $451 million, up from $409 million on Dec 31, 2022.
As of Mar 31, 2023, the long-term debt was $69.11 billion compared with $65.87 billion on Dec 31, 2022.
During the three months ended Mar 31, 2023, the company generated net cash from operating activities of $1,483 million compared with $1,798 billion in the same period last year.
Guidance
Duke Energy reaffirmed its 2023 adjusted EPS guidance. The company still expects to generate adjusted EPS in the range of $5.55-$5.75. The Zacks Consensus Estimate for 2023 earnings, pegged at $5.62 per share, is lower than the midpoint of the company’s projected range.
DUK now projects long-term EPS growth expectation in the range of 5-7% through 2027.
Ameren Corporation’s (AEE - Free Report) first-quarter 2023 earnings of $1.00 per share surpassed the Zacks Consensus Estimate of 94 cents by 6.4%. The reported figure increased 3.1% year over year.
Total revenues came in at $2,062 million in the reported quarter, which improved 9.7% year over year due to higher electric revenues. Revenues also beat the Zacks Consensus Estimate of $1,939 million by 6.4%.
Public Service Enterprise Group Incorporated (PEG - Free Report) , or PSEG, reported first-quarter 2023 adjusted operating earnings of $1.39 per share, which beat the Zacks Consensus Estimate of $1.21 by 14.9%. Earnings also increased 4.5% from the prior-year reported figure.
Operating revenues came in at $3,755 million in the first quarter, which beat the Zacks Consensus Estimate of $2,557.7 million by 46.8%. The top line also increased by 62.3% from the year-ago quarter’s $2,313 million.
Entergy Corporation (ETR - Free Report) reported first-quarter 2023 earnings of $1.14 per share, which missed the Zacks Consensus Estimate of $1.34 by 14.9%. The reported figure also declined 13.6% from $1.32 per share in the year-ago quarter.
Entergy’s reported revenues of $2,981.1 million beat the Zacks Consensus Estimate of $2,804.2 million by 6.4%. The figure also improved 3.6% from $2,877.9 million in the year-ago quarter due to higher Electric revenues.
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Duke Energy (DUK) Q1 Earnings Miss Estimates, Revenues Rise Y/Y
Duke Energy Corporation (DUK - Free Report) reported first-quarter 2023 adjusted earnings of $1.20 per share, which lagged the Zacks Consensus Estimate of $1.28 by 6.3%. The bottom line also declined 6.9% year over year.
Including one-time adjustments, the company reported a GAAP loss of $1.01 per share compared to the year-ago quarter’s earnings of $1.08 per share.
Total Revenues
Total operating revenues came in at $7,276 million, which improved 3.8% from $7,011 million in the year-ago period. The reported top line also surpassed the Zacks Consensus Estimate of $7,197 million by 1.1%.
The Regulated electric unit’s operating revenues were $6,324 million (up 6.6% year over year), contributing 86.9% to the quarter’s total revenues. Revenues from the Regulated natural gas business totaled $882 million, down 11.9% year over year.
The Non-regulated Electric and Other segment generated revenues of $70 million, which dropped 7.9% 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 $5,609 million in the reported quarter, down 1.6% year over year. The decrease was largely driven by lower operation, maintenance and other expenses.
The operating income improved 27.4% to $1,674 million from $1,314 million recorded in the year-ago quarter.
Interest expenses rose to $720 million from $569 million recorded in the first quarter of 2022.
For the reported quarter, the average number of customers in its Electric Utilities increased 1.5% year over year. Total electric sales volumes for the reported quarter went down 9.5% year over year to 58,246 gigawatt-hours.
Segmental Highlights
Electric Utilities & Infrastructure: This segment’s earnings for the first quarter totaled $791 million, down from $896 million in the first quarter of 2022.
Gas Utilities & Infrastructure: Earnings generated from this segment totaled $287 million compared with $254 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 an adjusted loss of $168 million compared with a loss of $171 million in the year-ago quarter.
Financial Condition
As of Mar 31, 2023, Duke Energy had cash & cash equivalents of $451 million, up from $409 million on Dec 31, 2022.
As of Mar 31, 2023, the long-term debt was $69.11 billion compared with $65.87 billion on Dec 31, 2022.
During the three months ended Mar 31, 2023, the company generated net cash from operating activities of $1,483 million compared with $1,798 billion in the same period last year.
Guidance
Duke Energy reaffirmed its 2023 adjusted EPS guidance. The company still expects to generate adjusted EPS in the range of $5.55-$5.75. The Zacks Consensus Estimate for 2023 earnings, pegged at $5.62 per share, is lower than the midpoint of the company’s projected range.
DUK now projects long-term EPS growth expectation in the range of 5-7% through 2027.
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
Ameren Corporation’s (AEE - Free Report) first-quarter 2023 earnings of $1.00 per share surpassed the Zacks Consensus Estimate of 94 cents by 6.4%. The reported figure increased 3.1% year over year.
Total revenues came in at $2,062 million in the reported quarter, which improved 9.7% year over year due to higher electric revenues. Revenues also beat the Zacks Consensus Estimate of $1,939 million by 6.4%.
Public Service Enterprise Group Incorporated (PEG - Free Report) , or PSEG, reported first-quarter 2023 adjusted operating earnings of $1.39 per share, which beat the Zacks Consensus Estimate of $1.21 by 14.9%. Earnings also increased 4.5% from the prior-year reported figure.
Operating revenues came in at $3,755 million in the first quarter, which beat the Zacks Consensus Estimate of $2,557.7 million by 46.8%. The top line also increased by 62.3% from the year-ago quarter’s $2,313 million.
Entergy Corporation (ETR - Free Report) reported first-quarter 2023 earnings of $1.14 per share, which missed the Zacks Consensus Estimate of $1.34 by 14.9%. The reported figure also declined 13.6% from $1.32 per share in the year-ago quarter.
Entergy’s reported revenues of $2,981.1 million beat the Zacks Consensus Estimate of $2,804.2 million by 6.4%. The figure also improved 3.6% from $2,877.9 million in the year-ago quarter due to higher Electric revenues.