Duke Energy’s Q2 2018 Profit Sinks as Expenses Rise



EPS fall 8% YoY

Duke Energy (DUK), the second largest utility by market cap, reported its second-quarter earnings results on August 2. It reported adjusted EPS of $0.93 in the quarter, missing analysts’ consensus estimate. In the same quarter last year, Duke Energy reported EPS of $1.01.

Duke Energy’s EPS in the reported quarter fell mainly due to an increase in operational expenses and tax reforms. Favorable weather positively impacted Duke Energy’s earnings.

DUK eps

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Earnings highlights

Duke Energy reported total revenue of $5.64 billion in the second quarter compared to its revenue of $5.55 billion in the comparable period last year. Duke Energy’s total electric sales rose 2.4% YoY (year-over-year) in the quarter. Its customer base also increased 1.4% YoY.

The company’s operating expenses in the reported quarter were $4.67 billion, an increase of ~11% YoY. Duke Energy’s consolidated adjusted effective tax rate fell to 18.4% in the reported quarter from 32.3% in the same period last year due to tax reform.

Duke Energy aims to grow 4%–6% per year through 2022—in line with the industry average. For 2018, Duke Energy has given an EPS guidance range of $4.55–$4.85.

Duke Energy stock has fallen ~4% so far this year, significantly underperforming broader utilities (XLU) (IDU).

To learn more about Duke Energy’s dividends, read All You Need to Know about Duke Energy’s Dividends.


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