Duke Energy (DUK) to Post Q2 Earnings: What's in Store?
Duke Energy Corporation DUK is slated to report second-quarter 2023 results on Aug 8 before the opening bell.
In the last reported quarter, the company reported a negative earnings surprise of 6.98%. Duke Energy has a trailing four-quarter negative earnings surprise of 0.34%, on average.
Factors to Note
In the second quarter, some parts of DUK’s service territories experienced warmer-than-normal temperatures, while some other parts observed cooler temperature patterns. Such a mixed weather pattern can be expected to have a modest impact on Duke Energy’s top line in the second quarter.
Favorable rate hikes and strong customer growth may have positively contributed to Duke Energy’s second-quarter revenues. However, in the second quarter of 2023, some parts of its service areas witnessed tornados, which might have resulted in outages for DUK’s customers, thereby impacting its revenues.
From the cost perspective, operation and maintenance costs to restore damages caused by the aforementioned tornados might have an adverse impact on DUK’s second-quarter earnings. Also, higher interest expenses might have weighed on the bottom line in the second quarter.
Expectations
The Zacks Consensus Estimate for second-quarter revenues is pegged at $6.57 billion, suggesting a decline of 1.8% from the year-ago quarter.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 98 cents per share, indicating a decrease of 14% from the prior-year reported figure.
Duke Energy Corporation Price and EPS Surprise
Duke Energy Corporation price-eps-surprise | Duke Energy Corporation Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Duke Energy this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.
DUK has an Earnings ESP of -4.02% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are three utilities yet to release second-quarter results, and you may want to consider them as these have the right combination of elements to post an earnings beat this season:
ALLETE, Inc. ALE has an Earnings ESP of +2.56% and a Zacks Rank #3. The Zacks Consensus Estimate for its second-quarter sales, pegged at $378.5 million, implies growth of 1.5% from the prior-year quarter’s tally. You can see the complete list of today’s Zacks #1 Rank stocks here.
ALE has a four-quarter negative earnings surprise of 10.64%, on average. The Zacks Consensus Estimate for ALLETE’s second-quarter earnings is pegged at 78 cents per share.
BCE Inc. BCE has an Earnings ESP of +2.94% and a Zacks Rank #3. The Zacks Consensus Estimate for its second-quarter earnings is pegged at 61 cents per share.
The Zacks Consensus Estimate for BCE’s second-quarter sales is pegged at $4.53 billion. This suggests a 1.4% decline from the prior-year reported figure.
TransAlta Corporation TAC has an Earnings ESP of +440.01% and a Zacks Rank #3. The Zacks Consensus Estimate for TransAlta’s second-quarter earnings is pegged at 3 cents per share.
The company delivered an earnings surprise of 179.31% in the last reported quarter. TAC’s four-quarter average negative earnings surprise is 84.53%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Duke Energy Corporation (DUK) : Free Stock Analysis Report
BCE, Inc. (BCE) : Free Stock Analysis Report
TransAlta Corporation (TAC) : Free Stock Analysis Report
Allete, Inc. (ALE) : Free Stock Analysis Report
