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Duke Energy (DUK) Q2 Earnings Miss Estimates, Revenues Rise Y/Y
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Duke Energy Corporation (DUK - Free Report) reported second-quarter 2023 adjusted earnings of 91 cents per share, which lagged the Zacks Consensus Estimate of 98 cents by 7.1%. The bottom line also declined 16.5% year over year.
Including one-time adjustments, the company reported a GAAP loss of 32 cents per share compared to the year-ago quarter’s earnings of $1.14 per share.
Total Revenues
Total operating revenues came in at $6,578 million, which improved 0.2% from $6,564 million in the year-ago period. The reported top line beat the Zacks Consensus Estimate of $6,568.1 million by 0.2%.
The Regulated electric unit’s operating revenues were $6,176 million (up 1.7% year over year), contributing 93.9% to the quarter’s total revenues. Revenues from the Regulated natural gas business totaled $331 million, down 22.1% year over year.
The Non-regulated Electric and Other segment generated revenues of $71 million, which increased 10.9% year over year.
Duke Energy Corporation Price, Consensus and EPS Surprise
Duke Energy’s total operating expenses amounted to $5,179 million in the reported quarter, up 1.1% year over year. The increase was largely driven by an increase in the cost of fuel used in electric generation and purchased power, higher operation, maintenance and other expenses and a rise in depreciation and amortization expenses.
The operating income declined 1.2% to $1,430 million from $1,448 million recorded in the year-ago quarter.
Interest expenses rose to $727 million from $588 million recorded in the second 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 6.8% year over year to 60,114 gigawatt-hours.
Segmental Highlights
Electric Utilities & Infrastructure: This segment’s adjusted earnings for the second quarter totaled $850 million, down from $958 million in the second quarter of 2022.
Gas Utilities & Infrastructure: Earnings generated from this segment totaled $25 million compared with $19 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 $161 million compared with a loss of $126 million in the year-ago quarter.
Financial Condition
As of Jun 30, 2023, Duke Energy had cash & cash equivalents of $377 million, down from $409 million on Dec 31, 2022.
As of Jun 30, 2023, the long-term debt was $69.91 billion compared with $65.87 billion on Dec 31, 2022.
During the six months ended Jun 30, 2023, the company generated net cash from operating activities of $3,785 million compared with $4,035 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 $5.61 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.
American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2023 operating earnings per share (EPS) of $1.13, which lagged the Zacks Consensus Estimate of $1.14 by 0.9%. The bottom line also declined by 5.8% from $1.20 in the year-ago quarter.
American Electric’s second-quarter operating revenues of $4,372.5 million lagged the Zacks Consensus Estimate of $4,686.7 million by 6.7%. The reported figure also decreased 5.8% from the year-ago quarter’s $4,639.7 million.
PG&E Corporation’s (PCG - Free Report) adjusted EPS of 23 cents in the second quarter of 2023 lagged the Zacks Consensus Estimate of 27 cents by 14.8%. The bottom line decreased 8% from the year-ago quarter’s reported figure.
In the second quarter, PCG reported total revenues of $5,290 million compared with $5,118 million in the year-ago period. Operating revenues missed the Zacks Consensus Estimate of $5,608.6 million by 5.7%.
CenterPoint Energy, Inc. (CNP - Free Report) reported second-quarter 2023 adjusted earnings of 28 cents per share, which lagged the Zacks Consensus Estimate of 29 cents by 3.4%. The bottom line also declined 10.7% from the year-ago quarter’s figure of 31 cents.
CNP generated revenues of $1,875 million, down 3.5% from the year-ago figure. The top line missed the Zacks Consensus Estimate of $1,922.8 million by 2.5%.
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Duke Energy (DUK) Q2 Earnings Miss Estimates, Revenues Rise Y/Y
Duke Energy Corporation (DUK - Free Report) reported second-quarter 2023 adjusted earnings of 91 cents per share, which lagged the Zacks Consensus Estimate of 98 cents by 7.1%. The bottom line also declined 16.5% year over year.
Including one-time adjustments, the company reported a GAAP loss of 32 cents per share compared to the year-ago quarter’s earnings of $1.14 per share.
Total Revenues
Total operating revenues came in at $6,578 million, which improved 0.2% from $6,564 million in the year-ago period. The reported top line beat the Zacks Consensus Estimate of $6,568.1 million by 0.2%.
The Regulated electric unit’s operating revenues were $6,176 million (up 1.7% year over year), contributing 93.9% to the quarter’s total revenues. Revenues from the Regulated natural gas business totaled $331 million, down 22.1% year over year.
The Non-regulated Electric and Other segment generated revenues of $71 million, which increased 10.9% 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 $5,179 million in the reported quarter, up 1.1% year over year. The increase was largely driven by an increase in the cost of fuel used in electric generation and purchased power, higher operation, maintenance and other expenses and a rise in depreciation and amortization expenses.
The operating income declined 1.2% to $1,430 million from $1,448 million recorded in the year-ago quarter.
Interest expenses rose to $727 million from $588 million recorded in the second 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 6.8% year over year to 60,114 gigawatt-hours.
Segmental Highlights
Electric Utilities & Infrastructure: This segment’s adjusted earnings for the second quarter totaled $850 million, down from $958 million in the second quarter of 2022.
Gas Utilities & Infrastructure: Earnings generated from this segment totaled $25 million compared with $19 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 $161 million compared with a loss of $126 million in the year-ago quarter.
Financial Condition
As of Jun 30, 2023, Duke Energy had cash & cash equivalents of $377 million, down from $409 million on Dec 31, 2022.
As of Jun 30, 2023, the long-term debt was $69.91 billion compared with $65.87 billion on Dec 31, 2022.
During the six months ended Jun 30, 2023, the company generated net cash from operating activities of $3,785 million compared with $4,035 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 $5.61 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
American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2023 operating earnings per share (EPS) of $1.13, which lagged the Zacks Consensus Estimate of $1.14 by 0.9%. The bottom line also declined by 5.8% from $1.20 in the year-ago quarter.
American Electric’s second-quarter operating revenues of $4,372.5 million lagged the Zacks Consensus Estimate of $4,686.7 million by 6.7%. The reported figure also decreased 5.8% from the year-ago quarter’s $4,639.7 million.
PG&E Corporation’s (PCG - Free Report) adjusted EPS of 23 cents in the second quarter of 2023 lagged the Zacks Consensus Estimate of 27 cents by 14.8%. The bottom line decreased 8% from the year-ago quarter’s reported figure.
In the second quarter, PCG reported total revenues of $5,290 million compared with $5,118 million in the year-ago period. Operating revenues missed the Zacks Consensus Estimate of $5,608.6 million by 5.7%.
CenterPoint Energy, Inc. (CNP - Free Report) reported second-quarter 2023 adjusted earnings of 28 cents per share, which lagged the Zacks Consensus Estimate of 29 cents by 3.4%. The bottom line also declined 10.7% from the year-ago quarter’s figure of 31 cents.
CNP generated revenues of $1,875 million, down 3.5% from the year-ago figure. The top line missed the Zacks Consensus Estimate of $1,922.8 million by 2.5%.