Duke Energy (DUK) Q4 Earnings: Disappointment In Store?
Zacks Investment Research | Feb 15, 2018 11:20PM ET
Duke Energy Corporation (NYSE:DUK) is set to report fourth-quarter 2017 results on Feb 20, before the opening bell.
Last quarter, the company posted a positive earnings surprise of 1.92%. However, the company missed the Zacks Consensus Estimate in two of the past four quarters, the average earnings miss being 0.24%.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Hurricane Irma led to wide-spread catastrophic losses in Florida during the third quarter of 2017. In relation to this, Duke Energy filed an application with the Florida Public Service Commission (“FPSC”) in December 2017, to recoup the expenses incurred to restore normalcy of utility services in the state post the hurricane
Per this filing, the company has requested for a restoration cost recovery of $381 million and an additional $132 million to replenish its storm reserve account. However, the company believes that due to the latest federal tax reform, its customers’ electricity bill will no longer increase on FPSC approving it.
Owing to these factors, the Zacks Consensus Estimate for Duke Energy’s earnings of 91 cents reflects an improvement of 12.4% year over year, while sales are anticipated to rise 4% to $5.85 billion.
However, adverse outcome from pending regulatory cases may negatively impact results. Notably, the company incurred expenses in relation to coal ash release which in turn may weigh on its financials.
Earnings Whispers
Our proven model does not conclusively show that Duke Energy will beat estimates this quarter. That is because a stock needs to have both a positive Zacks Investment Research
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