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.

Duke Energy’s Q2 2018 Profit Sinks as Expenses Rise

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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