Infrastructure

What to Look for in Duke Earnings

Chris Lange

Published: February 17, 2016 1:40 pm

Last Updated: January 13, 2020 1:04 pm

Duke Energy Corp. (NYSE: DUK) is scheduled to report its fourth-quarter financial results before the markets open on Thursday. Thomson Reuters consensus estimates call for $0.90 in earnings per share (EPS) on revenue of $6.29 billion. The same period from the previous year had EPS of $0.86 and $5.56 billion in revenue.

Over the course of 2015, this company was able to offset weakness in the international business with favorable weather, solid operational performance in the regulated business and benefits from closing certain strategic initiatives earlier than anticipated.

Duke has solid fundamentals. The company’s 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 the company prior to the earnings report:

• SunTrust has a Neutral rating with a $79 price target.
• Wells Fargo has a Market Perform rating with a $77 price target.
• Merrill Lynch has a Neutral rating with a $73 price target.
• Argus has a Buy rating with an $81 price target.

So far in 2016, Duke is outperforming the broad markets, with the stock up 8% year to date. It is flat over the past 52 weeks, though.

Shares of Duke were trading down 0.9% at $75.60 on Wednesday, with a consensus analyst price target of $76.63 and a 52-week trading range of $65.50 to $81.42.