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What Will Drive Duke Energy’s 3Q17 Earnings?

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Duke Energy to report on November 3

The biggest rate-regulated utility-holding company in the country, Duke Energy (DUK), is slated to report its third-quarter financial results on November 3. According to Wall Street analyst estimates, Duke is expected to report earnings of $1.54 per share for the quarter that ended on September 30. Duke reported earnings of $1.68 per share in the same quarter last year.

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Earnings drivers

According to analysts, Duke Energy is expected to report total revenues of $7.47 billion for the quarter that ended on September 30. In the same quarter last year, it reported total revenues of $6.8 billion. The third quarter of the year is generally a stronger quarter for Duke Energy in a year.

However, Duke Energy’s revenues might be hampered due to milder weather in 3Q17. States in which Duke Energy has a significant presence—Florida and the Carolinas—experienced nearly 25% lower cooling degree days compared to the same period last year. Milder weather generally lowers electricity utilization, which ultimately hampers utility revenues.

Duke Energy’s earnings for the quarter are expected to be driven by its investments in its regulated rate base. Its earnings for the quarter might be positively impacted due to increased contributions from its gas operations after Piedmont acquisition.

Duke Energy management is aiming for per-share earnings growth of 4%–6% annually through 2021. Utilities (XLU)(VPU), on average, have a similar target earnings growth for the future.

Dominion Energy (D) plans to report its third-quarter earnings on October 30. Duke Energy’s only larger peer, NextEra Energy (NEE), plans to release its third-quarter earnings on October 26. You can learn more about NEE’s expected earnings in NextEra Energy: Expected 3Q17 Earnings and Growth Prospects.

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