Duke Energy (DUK) Misses On Q1 Earnings, Keeps 2017 View
Zacks Investment Research | May 08, 2017 09:28PM ET
Duke Energy Corporation (NYSE:DUK) reported first-quarter 2017 adjusted earnings of $1.04 per share, missing the Zacks Consensus Estimate of $1.06 by 1.9%. Quarterly earnings also declined 8% year over year due to the absence of International Energy that was sold in Dec 2016, and milder winter weather. These were, however, partially offset by Piedmont Natural Gas' earnings contribution and favorable operations and maintenance (O&M) expenses at Electric Utilities and Infrastructure.
Total Revenue
In the first quarter of 2017, the company’s total operating revenue was $5,729 million, up 6.5% from $5,377 million a year ago. Nevertheless, the reported figure missed the Zacks Consensus Estimate of $5,803 million by 1.3%.
The regulated electric unit’s revenues were $4,947 million (down 2.8%), representing approximately 86.4% of the company’s quarterly total revenue. Revenues from the regulated natural gas business were $670 million (up 294.1%). Its commercial renewable revenues were $128, up 12.3% year over year. Other segment generated revenues were $33 million, up 13.8% year over year.
Operational Update
The company’s total operating expenses were $4,303 million in the quarter, up from $4,144 million a year ago. Costs increased on account of higher cost of natural gas, operation, maintenance and other expenses, depreciation and amortization expenses and property as well as other taxes.
Operating income in the quarter increased to $1,437 million from $1,240 million a year ago.
Interest expenses rose to $491 million from $489 million a year ago.
Quarterly Segmental Highlights
Electric Utilities & Infrastructure: Adjusted income in the quarter was $635 million, down from $664 million a year ago. The downside can be attributed to warm winter weather.
Gas Utilities & Infrastructure: Adjusted income of $133 million at this segment demonstrated an improvement from $32 million in the year-ago quarter.
Commercial Renewables: This segment reported adjusted income of $25 million in the quarter compared with $26 million a year ago.
Other: The segment includes corporate interest expenses not allocated to other business units, results from Duke Energy’s captive insurance company and other investments.
Adjusted net expenses were $67 million, up from $62 million in the year-ago quarter.
Duke Energy Corporation Price, Consensus and EPS Surprise
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