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Duke Energy's Q3 Earnings Miss Estimates, Revenues Increase Y/Y

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Duke Energy Corporation's (DUK - Free Report) third-quarter 2024 adjusted earnings of $1.62 per share missed the Zacks Consensus Estimate of $1.73 by 6.4%. Moreover, the bottom line declined 16.5% from $1.94 per share reported in the year-ago quarter.

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The year-over-year decline in adjusted earnings was due to a higher effective tax rate, storm costs, increasing interest expense and higher depreciation on a growing asset base.

The company generated GAAP earnings of $1.60 per share compared with $1.59 in the third quarter of 2023.

DUK’s Total Revenues

Total operating revenues were $8.15 billion, which rose 2% from $7.99 billion in the year-ago period. The top line also surpassed the Zacks Consensus Estimate of $8 billion by 1.9%.

The Regulated electric unit’s operating revenues were $7.78 billion, up 1.8% year over year. The unit contributed 95.4% to the quarter’s total revenues.

Revenues from the Regulated natural gas business totaled $298 million, up 4.9% year over year.

The Non-regulated Electric and Other segment generated revenues of $81 million, which increased 15.7% year over year.

Duke Energy Corporation Price, Consensus and EPS Surprise

Duke Energy Corporation Price, Consensus and EPS Surprise

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

Highlights of DUK’s Release

Duke Energy’s total operating expenses amounted to $6.02 billion, up 2.1% year over year. The increase was primarily due to higher expenses for fuel used in electric generation and purchased power, depreciation and amortization expenses as well as higher cost of natural gas.

The operating income increased 1.5% to $2.14 billion from $2.11 billion recorded in the year-ago quarter.

Interest expenses rose to $872 million from $774 million recorded in the third quarter of 2023.

In the quarter, the average number of customers in the Electric Utilities unit increased 2% year over year. Total electric sales volumes declined 0.5% year over year to 72,732 gigawatt-hours.

DUK’s Segmental Highlights

Electric Utilities & Infrastructure: This segment’s adjusted earnings totaled $1,464 million, down from $1,531 million in the third quarter of 2023.

Gas Utilities & Infrastructure: Loss generated from this segment totaled $22 million against earnings of $15 million in the year-ago period.

Other: The segment includes corporate interest expenses not allocated to other business units, which result from Duke Energy’s captive insurance company and other investments. This segment incurred a loss of $206 million compared with a loss of $59 million in the third quarter of 2023.

Financial Condition of DUK

As of Sept. 30, 2024, Duke Energy had cash & cash equivalents of $376 million, up from $253 million on Dec. 31, 2023.

As of the same date, long-term debt was $76.52 billion compared with $72.45 billion on Dec. 31, 2023.

During the first nine months of 2024, the company generated net cash from operating activities of $8.95 billion compared with $7.31 billion in the same period last year.

2024 Guidance for DUK

Duke Energy reaffirmed its 2024 adjusted earnings per share (EPS) guidance. The company still expects to generate adjusted EPS in the range of $5.85-$6.10. The Zacks Consensus Estimate for earnings is pegged at $5.98 per share, which is almost in line with the midpoint of the company’s projected range.

DUK still projects long-term EPS growth to be in the band of 5-7% through 2028.

DUK’s 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.

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