Infrastructure

Duke Energy's Q3 Proves Stronger Than Analysts Thought

Duke Energy / Wikimedia Commons

When Duke Energy Corp. (NYSE: DUK) reported its most recent quarterly results before the markets opened on Thursday, the utility giant posted $1.87 in earnings per share (EPS) on $6.72 billion in revenue. Consensus estimates had called for $1.79 per share and $7.25 billion. In the third quarter of last year, the company said it had EPS of $1.82 on $6.94 billion in revenue.

During the third quarter, higher adjusted results year over year were led by the Electric Utilities and Infrastructure and Commercial Renewables segments. Electric Utilities and Infrastructure benefited from rate case contributions and lower expenses driven by significant mitigation efforts targeted at reducing the impact of mild weather and lower load results due to the COVID-19 pandemic.

Commercial Renewables continued to grow primarily due to new renewable projects as the company continues to expand its clean energy portfolio.

The company reported its segments as follows:

  • Electric Utilities and Infrastructure recognized third-quarter segment income of $1.38 billion, compared to $1.39 billion in the third quarter of 2019.
  • Gas Utilities and Infrastructure recognized segment loss of $73 million, compared to segment income of $26 million last year.
  • Commercial Renewables recognized third-quarter segment income of $60 million, compared to $40 million.
  • Other recognized a third-quarter net loss of $103 million, compared to a year-ago net loss of $124 million.

On the books, Duke Energy’s cash and cash equivalents totaled $308 million at the end of the quarter, down from $311 million at the end of the previous fiscal year.

The company offered no guidance in the report for the current quarter. However, analysts are calling for $1.06 in EPS on $6.41 billion in revenue for the fourth quarter. Looking ahead to the full year, analysts expect $5.08 in EPS and on $25.21 billion in revenue.

Duke Energy stock was last seen up 3.2% at $96.52, with a consensus price target of $95.07 and a 52-week trading range of $62.13 to $103.79.

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