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Duke Energy (DUK) Q4 Earnings Miss Estimates, Revenues Fall
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Duke Energy Corporation (DUK - Free Report) reported fourth-quarter 2023 adjusted earnings of $1.51 per share, which missed the Zacks Consensus Estimate of $1.54 by 1.9%. However, the bottom line increased 36% year over year.
Including one-time adjustments, the company reported GAAP earnings of $1.27 per share against the year-ago quarter’s loss of 86 cents.
For 2023, the company reported adjusted earnings of $5.56 per share, which missed the Zacks Consensus Estimate of $5.59 by 0.5%. However, the bottom line increased 5.5% from $5.27 per share reported in the previous year.
Total Revenues
Total operating revenues came in at $7.21 billion, which declined 1.9% from $7.35 billion in the year-ago period. The reported top line also lagged the Zacks Consensus Estimate of $7.53 billion by 4.2%.
The Regulated electric unit’s operating revenues were $6.48 billion, up 1.6% year over year, contributing 89.8% to the quarter’s total revenues. Revenues from the Regulated natural gas business totaled $655 million, down 27.2% year over year.
The Non-regulated Electric and Other segment generated revenues of $80 million, which increased 9.6% year over year.
For 2023, the company reported operating revenues of $29.06 billion, which missed the Zacks Consensus Estimate of $29.38 billion by 1.1%. However, the full year’s top line went up 1% from $28.77 billion in 2022.
Duke Energy Corporation Price, Consensus and EPS Surprise
Duke Energy’s total operating expenses amounted to $5.36 billion in the reported quarter, down 13% year over year. The decrease was primarily driven by a reduction in fuel used in electric generation and purchased power and lower natural gas costs. Also, lower operation, maintenance and other expenses, as well as property and other taxes, have contributed to the reduced operating expenses.
The operating income increased 55.4% to $1.86 billion from $1.19 billion recorded in the year-ago quarter.
Interest expenses rose to $793 million from $679 million recorded in the fourth quarter of 2022.
For the reported quarter, the average number of customers in its Electric Utilities increased 1.8% year over year. Total electric sales volumes for the reported quarter went down 2.3% year over year to 59,839 gigawatt-hours.
Segmental Highlights
Electric Utilities & Infrastructure: This segment’s adjusted earnings for the fourth quarter totaled $1,115 million, up from $811 million in the fourth quarter of 2022.
Gas Utilities & Infrastructure: Adjusted earnings generated from this segment totaled $192 million compared with $191 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 $133 million, which came in line with the year-ago quarter’s figure.
Financial Condition
As of Dec 31, 2023, Duke Energy had cash & cash equivalents of $253 million, down from $409 million on Dec 31, 2022.
As of Dec 31, 2023, the long-term debt was $72.45 billion compared with $65.87 billion on Dec 31, 2022.
During 2023, the company generated net cash from operating activities of $9.79 billion compared with $5.93 billion in the same period last year.
2024 Guidance
Duke Energy introduced its 2024 adjusted EPS guidance. The company expects to generate adjusted EPS in the range of $5.85-$6.10. The Zacks Consensus Estimate for 2024 earnings is pegged at $5.98 per share, which is at par with the midpoint of the company’s projected range.
DUK projects long-term EPS growth of 5-7% through 2028.
NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2023 adjusted earnings of 52 cents per share, which beat the Zacks Consensus Estimate of 49 cents by 6.1%. The bottom line was also up nearly 2% from the prior-year quarter.
For the fourth quarter, NextEra’s operating revenues were $6.87 billion, which surpassed the Zacks Consensus Estimate of $6.1 billion by 13.4%. The top line improved 11.2% year over year.
Xcel Energy (XEL - Free Report) reported fourth-quarter 2023 operating earnings of 83 cents per share, which lagged the Zacks Consensus Estimate of 85 cents by 2.3%. However, the bottom line improved 620.3% from the year-ago quarter’s earnings of 69 cents.
The fourth-quarter revenues of $3.44 billion missed the Zacks Consensus Estimate of $3.97 billion by 13.35%. The figure also declined 15.1% from the year-ago quarter’s $4.05 billion.
PNM Resources (PNM - Free Report) reported fourth-quarter 2023 earnings of 18 cents per share, which surpassed the Zacks Consensus Estimate of 15 cents by 20%. The company reported earnings of 15 cents per share in the prior-year quarter.
Revenues of $412 million for the fourth quarter of 2023 missed the Zacks Consensus Estimate of $705 million by 41.55%. The top line also decreased from the year-ago figure of $576 million.
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Duke Energy (DUK) Q4 Earnings Miss Estimates, Revenues Fall
Duke Energy Corporation (DUK - Free Report) reported fourth-quarter 2023 adjusted earnings of $1.51 per share, which missed the Zacks Consensus Estimate of $1.54 by 1.9%. However, the bottom line increased 36% year over year.
Including one-time adjustments, the company reported GAAP earnings of $1.27 per share against the year-ago quarter’s loss of 86 cents.
For 2023, the company reported adjusted earnings of $5.56 per share, which missed the Zacks Consensus Estimate of $5.59 by 0.5%. However, the bottom line increased 5.5% from $5.27 per share reported in the previous year.
Total Revenues
Total operating revenues came in at $7.21 billion, which declined 1.9% from $7.35 billion in the year-ago period. The reported top line also lagged the Zacks Consensus Estimate of $7.53 billion by 4.2%.
The Regulated electric unit’s operating revenues were $6.48 billion, up 1.6% year over year, contributing 89.8% to the quarter’s total revenues. Revenues from the Regulated natural gas business totaled $655 million, down 27.2% year over year.
The Non-regulated Electric and Other segment generated revenues of $80 million, which increased 9.6% year over year.
For 2023, the company reported operating revenues of $29.06 billion, which missed the Zacks Consensus Estimate of $29.38 billion by 1.1%. However, the full year’s top line went up 1% from $28.77 billion in 2022.
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 $5.36 billion in the reported quarter, down 13% year over year. The decrease was primarily driven by a reduction in fuel used in electric generation and purchased power and lower natural gas costs. Also, lower operation, maintenance and other expenses, as well as property and other taxes, have contributed to the reduced operating expenses.
The operating income increased 55.4% to $1.86 billion from $1.19 billion recorded in the year-ago quarter.
Interest expenses rose to $793 million from $679 million recorded in the fourth quarter of 2022.
For the reported quarter, the average number of customers in its Electric Utilities increased 1.8% year over year. Total electric sales volumes for the reported quarter went down 2.3% year over year to 59,839 gigawatt-hours.
Segmental Highlights
Electric Utilities & Infrastructure: This segment’s adjusted earnings for the fourth quarter totaled $1,115 million, up from $811 million in the fourth quarter of 2022.
Gas Utilities & Infrastructure: Adjusted earnings generated from this segment totaled $192 million compared with $191 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 $133 million, which came in line with the year-ago quarter’s figure.
Financial Condition
As of Dec 31, 2023, Duke Energy had cash & cash equivalents of $253 million, down from $409 million on Dec 31, 2022.
As of Dec 31, 2023, the long-term debt was $72.45 billion compared with $65.87 billion on Dec 31, 2022.
During 2023, the company generated net cash from operating activities of $9.79 billion compared with $5.93 billion in the same period last year.
2024 Guidance
Duke Energy introduced its 2024 adjusted EPS guidance. The company expects to generate adjusted EPS in the range of $5.85-$6.10. The Zacks Consensus Estimate for 2024 earnings is pegged at $5.98 per share, which is at par with the midpoint of the company’s projected range.
DUK projects long-term EPS growth of 5-7% through 2028.
Zacks Rank
Duke Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility Releases
NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2023 adjusted earnings of 52 cents per share, which beat the Zacks Consensus Estimate of 49 cents by 6.1%. The bottom line was also up nearly 2% from the prior-year quarter.
For the fourth quarter, NextEra’s operating revenues were $6.87 billion, which surpassed the Zacks Consensus Estimate of $6.1 billion by 13.4%. The top line improved 11.2% year over year.
Xcel Energy (XEL - Free Report) reported fourth-quarter 2023 operating earnings of 83 cents per share, which lagged the Zacks Consensus Estimate of 85 cents by 2.3%. However, the bottom line improved 620.3% from the year-ago quarter’s earnings of 69 cents.
The fourth-quarter revenues of $3.44 billion missed the Zacks Consensus Estimate of $3.97 billion by 13.35%. The figure also declined 15.1% from the year-ago quarter’s $4.05 billion.
PNM Resources (PNM - Free Report) reported fourth-quarter 2023 earnings of 18 cents per share, which surpassed the Zacks Consensus Estimate of 15 cents by 20%. The company reported earnings of 15 cents per share in the prior-year quarter.
Revenues of $412 million for the fourth quarter of 2023 missed the Zacks Consensus Estimate of $705 million by 41.55%. The top line also decreased from the year-ago figure of $576 million.