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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 set to report third-quarter 2018 results on Nov 2, before the opening bell.

In the last reported quarter, the company delivered a negative earnings surprise of 9.71%. However, it surpassed the Zacks Consensus Estimate in three of the last four quarters, the average beat being 1.70%.

Let’s see how things are shaping up prior to this announcement.

Factors Under Consideration

During the third quarter, thunderstorms and heavy rain led to flooding in certain parts of Florida and North Carolina. Midway during the quarter, strong winds and hail impacted central Kentucky. This may have caused a few outages leading to disruption in smooth power supply, across the company’s service territories.

Further, during September, North Carolina was strongly hit by Hurricane Florence, which is expected to be one of the deadliest and costliest storms to ever impact the Carolinas. Inevitably, infrastructure took a significant blow due to the prolonged storms. Therefore, temperature is most likely to have an unfavorable impact on Duke Energy’s revenues in the to-be-reported quarter.

In line with this, the Zacks Consensus Estimate for Duke Energy’s third-quarter revenues is anticipated to decline 2.1% year over year to $6.35 billion.

The hurricane is also expected to have an unfavorable impact on Duke Enegy’s Electric Utilities and Infrastructure business segments. The company now is anticipated to experience higher operations and maintenance (O&M) costs led by the storm, apart from other infrastructural damages and losses.

In line with this, the Zacks Consensus Estimate for Duke Energy’s third-quarter earnings pegged at $1.53 reflects an annual decline of 3.8%.

What the Zacks Model Unveils

Our proven model does not conclusively show that Duke Energy is likely to beat estimates in the third quarter. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy)
or 3 (Hold) — for this to happen.

Earnings ESP: Duke Energy has an Earnings ESP of -0.82%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Duke Energy has a Zacks Rank #3.

Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Duke Energy Corporation Price and EPS Surprise

 

Duke Energy Corporation Price and EPS Surprise | Duke Energy Corporation Quote

Stocks That Warrant a Look

Here are a few operators in the Utility space you may consider, as our model shows that they have the right combination of elements to deliver an earnings beat this quarter:

The AES Corp. (AES - Free Report) has an Earnings ESP of +1.43% and a Zacks Rank #2. The company is scheduled to report third-quarter results on Nov 6. You can see the complete list of today’s Zacks #1 Rank stocks here.

Allete, Inc. (ALE - Free Report) has an Earnings ESP of +3.89% and a Zacks Rank #2. The company is scheduled to report third-quarter results on Nov 1.

Alliant Energy (LNT - Free Report) has an Earnings ESP of +1.19% and a Zacks Rank #3. The company is scheduled to report third-quarter results on Nov 6.

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