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Duke Energy’s Q4 Earnings Fall 11%, but Revenues Rise 6% YoY

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DUK missed estimates

Duke Energy (DUK), the second-largest utility by market cap, released its fourth-quarter and full-year 2018 earnings today. It reported adjusted earnings of $0.84 per share, missing consensus estimates for the quarter, which ended December 31. It reported earnings of $0.94 per share in the fourth quarter of 2017. The lower adjusted earnings were the result of higher depreciation and amortization costs and higher storm-related costs.

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Earnings highlights

For the full year 2018, Duke Energy reported adjusted earnings of $4.72 per share, an increase of 3% YoY. Its earnings in 2018 were positively impacted by favorable weather and higher retail sales volumes. The management has given an earnings guidance range of $4.80 to $5.20 per share for 2019, reflecting growth of ~6% YoY.

Duke Energy reported total revenues of $6.12 billion, beating consensus estimates for Q4 2018. In Q4 2017, it reported total revenues of $5.80 billion. Duke Energy’s total retail customers increased by 1.5%, while total retail electric sales also increased 1.5% in Q4 2018 compared to Q4 2017. Its utility subsidiaries witnessed higher electric usage per customer in 2018 for the first time in more than five years.

So far, Duke Energy stock has underperformed its peers this year. The stock has risen 4%, while utilities (XLU) at large have gained more than 5% YTD. You can read about Duke Energy’s current valuation here.

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