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Duke Energy (DUK) to Post Q4 Earnings: What's in Store?

By Zacks Investment ResearchStock MarketsFeb 07, 2022 11:26PM ET
www.investing.com/analysis/duke-energy-duk-to-post-q4-earnings-whats-in-store-200617498
Duke Energy (DUK) to Post Q4 Earnings: What's in Store?
By Zacks Investment Research   |  Feb 07, 2022 11:26PM ET
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Duke Energy Corporation (NYSE:DUK) DUK is slated to report fourth-quarter 2021 results on Feb 10, before the opening bell.

In the last reported quarter, the company delivered an earnings surprise of 3.87%. Duke Energy has a trailing four-quarter earnings surprise of 2.29%, on average.

Factors to Note

During the fourth quarter, the company’s service territories experienced mixed weather patterns. While some parts had warmer-than-normal temperatures accompanied by extreme drought conditions, in other parts, colder-than-normal temperature accompanied with moderate-to-heavy snowfall was observed. Thus, the overall weather pattern might have had a moderate impact on the utility’s fourth-quarter top-line performance.

With the U.S. economy gradually recovering over the past couple of quarters, an improvement in industrial and commercial sales along with solid customer growth must have contributed to revenues in the quarter to be reported.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $6.14 billion, suggesting growth of 6.2% from the year-ago quarter.

Duke Energy took initiatives in 2020 to significantly reduce its operations and maintenance (O&M) expenses in relation to COVID-19 mitigation efforts. As a result of reductions then, O&M costs might have escalated in the fourth quarter. This, along with higher income tax expenses, might have weighed on the to-be-reported quarter’s performance.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 95 cents per share, indicating a decline of 7.8% from the prior-year reported figure.

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. But that is not the case here.

Earnings ESP: The company’s Earnings ESP is -1.58%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Duke Energy currently carries a Zacks Rank #3.

Stocks to Consider

Here are three Utilities players you may want to consider, as these have the right combination of elements to post an earnings beat this season:

Ameren Corporation (NYSE:AEE) AEE has an Earnings ESP of +1.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ameren has a four-quarter average earnings surprise of 6.65%. The Zacks Consensus Estimate for Ameren’s fourth-quarter sales and earnings is pegged at $1.39 billion and 50 cents per share, respectively. AEE boasts a long-term earnings growth rate of 7.5%.

Dominion Energy D has an Earnings ESP of +0.09% and a Zacks Rank #3. It boasts a long-term earnings growth rate of 6.6%.

The Zacks Consensus Estimate for Dominion Energy’s fourth-quarter sales and earnings is pegged at $3.85 billion and 90 cents per share, respectively. D has a four-quarter average earnings surprise of 2.39%.

American Electric Power Company (NASDAQ:AEP), Inc. AEP has an Earnings ESP of +0.58% and a Zacks Rank #3.

American Electric boasts a long-term earnings growth rate of 5.6%. The Zacks Consensus Estimate for the company’s fourth-quarter sales and earnings is pegged at $4.02 billion and 94 cents per share, respectively. AEP has a four-quarter average earnings surprise of 1.61%.

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


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Ameren Corporation (AEE): Free Stock Analysis Report

Duke Energy Corporation (DUK): Free Stock Analysis Report

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Dominion Energy Inc. (D): Free Stock Analysis Report

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Duke Energy (DUK) to Post Q4 Earnings: What's in Store?
 

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Duke Energy (DUK) to Post Q4 Earnings: What's in Store?

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