Infrastructure

What to Look for in Duke Energy Earnings

Chris Lange

Published: May 2, 2016 12:10 pm

Last Updated: January 13, 2020 9:59 am

Duke Energy Corp. (NYSE: DUK) is set to report its first-quarter financial results before the markets open on Tuesday. The consensus estimates from Thomson Reuters are calling for $1.14 in earnings per share (EPS) on $6.05 billion in revenue. The same period from last year had $1.24 in EPS on $6.06 billion in revenue.

This is considered by some almost as defensive as the nation’s top water utility, American Water Works. On its own, Duke is the largest utility in America.

This company has solid fundamentals. Its rate base growth over the next four to five years is expected to be above the peer-group average, which should drive long-term earnings and cash flow growth.

Other positive fundamentals include the company’s improving balance sheet, generally positive relationship with state regulators, operating efficiencies and well-managed nuclear-generating assets.

A few analysts weighed in on Duke ahead of the earnings report:

• Deutsche Bank reiterated a Hold rating.
• Argus downgraded it to Hold from Buy.
• Mizuho reiterated a Hold rating.
• Barclays reiterated a Hold rating.

So far in 2016, Duke has outperformed the broad markets, with the stock up over 11%. Over the past 52 weeks, the stock is only up about 6%.

Shares of Duke were traded at $79.26 on Monday, with a consensus analyst price target of $79.53 and a 52-week trading range of $65.50 to $81.39.