Duke Energy Beats On Q4 Earnings, Issues 18′ EPS View

Duke Energy Corporation (DUK – Free Report) reported fourth-quarter 2017 adjusted earnings of 94 cents per share, beating the Zacks Consensus Estimate of 91 cents by 3.3%.

Earnings also improved 16% year over year driven by disciplined cost management and favorable weather conditions.

Duke Energy Corporation Price, Consensus and EPS Surprise

Duke Energy Corporation Price, Consensus and EPS Surprise | Duke Energy Corporation Quote

GAAP earnings were $1.00 in the fourth quarter, against loss of 33 cents in the prior-year quarter.

For 2017, the company reported adjusted earnings of $4.57 per share, beating the Zacks Consensus Estimate by a penny. The full-year earnings, however, dropped 2.6% from a year ago.

Total Revenues

In 2017, the company’s total operating revenues were $23.57 billion, up 3.6% from $22.74 billion a year ago. The reported figure, however, missed the Zacks Consensus Estimate of $23.82 billion.

The regulated electric unit’s revenues were $21.18 billion (down 0.2%), representing approximately 90% of total revenues in 2017.

Revenues from the regulated natural gas business totaled $1.73 billion (up 100.9%).

Non-regulated and Other segment generated revenues of $0.65 billion, down 0.8% year over year.

Operational Update

The company’s total operating expenses were $17.81 billion in 2017, up from $17.43 billion a year ago. Costs increased on higher cost of natural gas, depreciation and amortization expenses, property, and other taxes as well as impairment charges. Also, costs related to fuel used in electric generation and purchased power led to higher operating expenses.

Operating income in 2017 increased 8.2% to $5.78 billion from $5.34 billion a year ago.

Interest expenses rose to $1.99 billion from $1.92 billion a year ago.

Quarterly Segmental Highlights

Electric Utilities & Infrastructure: Adjusted income in the fourth quarter was $609 million, up from $483 million a year ago. The upside was driven by favorable weather as well as lower operating and maintenance expenses.