Zinger Key Points
- Duke Energy's Q3 EPS of $1.62 missed estimates, while revenue topped forecasts at $8.154B, driven by strong electric utilities results.
- Storm costs and rising O&M expenses impacted results; FY24 EPS outlook reaffirmed at $5.85-$6.10 with 5%-7% long-term growth guidance.
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Duke Energy Corporation DUK reported third-quarter adjusted EPS of $1.62, down from $1.94 a year ago and missing the consensus of $1.70.
Revenues of $8.154 billion exceeded the consensus of $8.058 billion.
Electric Utilities and Infrastructure’s adjusted segment income declined to $1.464 billion from $1.531 billion a year ago.
Quarterly results declined primarily due to increased O&M expenses, including storm-related costs, higher depreciation from an expanding asset base, rising interest expenses, and the impact of milder weather.
On the other hand, the Gas Utilities and Infrastructure segment reported an an adjusted loss of $22 million compared to an adjusted segment income of $15 million in the third quarter of 2023.
Total storm restoration costs, including capital expenditures, for Hurricanes Helene, Debby, and Milton are projected at $2.4 billion to $2.9 billion, primarily affecting Duke Energy Carolinas, Duke Energy Progress, and Duke Energy Florida.
The company expects these costs to be recognized in the third and fourth quarters of 2024.
At the end of the quarter, operating cash flow stood at $8.95 billion, and cash and equivalents stood at $447 million.
Lynn Good, Duke Energy chair and chief executive officer, said, “Our team’s commitment to our customers was unwavering as they worked around the clock to restore 5.5 million outages as quickly and safely as possible and rebuilt large portions of our system in a matter of days.”
FY24 Outlook Reaffirmed: Duke Energy expects adjusted EPS of $5.85 – $6.10 vs consensus of $5.98.
The company also reaffirmed its long-term adjusted EPS growth of 5%-7% through 2028 vs. the 2024 midpoint of $5.98.
Investors can gain exposure to the stock via SPDR Select Sector Fund – Utilities XLU and Fidelity MSCI Utilities Index ETF FUTY.
Price Action: DUK shares are down 1.33% at $112.12 at the last check Thursday.
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