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Duke Energy (DUK) to Post Q3 Earnings: What's in Store?

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Duke Energy Corporation (DUK - Free Report) is slated to report third-quarter 2023 results on Nov 2, before the opening bell.

In the last reported quarter, the company reported a negative earnings surprise of 7.14%. Duke Energy has a trailing four-quarter average negative earnings surprise of 3.03%.

Factors to Note

In the third quarter, the majority of DUK’s service territories experienced warmer-than-normal temperatures, which can be projected to have boosted electricity demand from the company’s customers during this year’s summer. This, in turn, must have bolstered the company’s quarterly top-line performance.

Duke Energy Corporation Price and EPS Surprise

Duke Energy Corporation Price and EPS Surprise

Duke Energy Corporation price-eps-surprise | Duke Energy Corporation Quote

Favorable rate hikes and strong customer growth might have positively contributed to Duke Energy’s third-quarter revenues. However, parts of its service areas witnessed some severe weather impacts in the to-be-reported quarter, including a handful of tropical storms that brought in flash floods and hails. These, in turn, caused widespread outages. Such outages might have adversely impacted the company’s revenues to some extent.

From the cost perspective, operation and maintenance costs to restore damages caused by the aforementioned tropical storms must have had an adverse impact on DUK’s third-quarter earnings. Nevertheless, the company’s cost mitigation initiatives to address rising interest rate and inflation headwinds, along with solid sales growth, must have bolstered its bottom line performance in the third quarter.

Q3 Expectations

The Zacks Consensus Estimate for third-quarter revenues is pegged at $8.13 billion, indicating an increase of 2% from the year-ago quarter’s figure.

The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.94 per share, indicating a 9% improvement year over year.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Duke Energy this time around. 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.

Earnings ESP: The company’s Earnings ESP is -1.21%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: DUK currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are three Utility players that you may want to consider as these have the right combination of elements to come up with an earnings beat this reporting cycle.

Consolidated Edison (ED - Free Report) has an Earnings ESP of +3.93% and a Zacks Rank #2 at present. The company delivered a four-quarter average earnings surprise of 8.22%.

Consolidated Edison boasts a long-term earnings growth rate of 2%. The Zacks Consensus Estimate for ED’s third-quarter earnings and sales is pegged at $1.58 per share and $3.82 billion, respectively.

NiSource (NI - Free Report) has an Earnings ESP of +18.52% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter earnings is pegged at 14 cents per share, implying a 40% increase from that reported in the prior-year quarter.

The consensus mark for NI’s sales is pinned at $1.06 billion. The company has a trailing four-quarter average negative earnings surprise of 5.61%.

Ameren (AEE - Free Report) has an Earnings ESP of +0.22% and a Zacks Rank #3 at present. The consensus estimate for third-quarter earnings is pinned at $1.80 per share, indicating a 3.5% increase year over year.

Ameren boasts a four-quarter average earnings surprise of 8.86%. The consensus mark for third-quarter sales is pegged at $2.37 billion, indicating growth of 2.9% from that recorded in the prior-year quarter.

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

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