Duke Energy Corp (DUK) Disappoints Wall Street, Misses Estimates

Duke Energy Corp (DUK) Disappoints Wall Street, Misses Estimates

Duke Energy Corp (NYSE:DUK)’s second quarter earnings missed analysts’ expectations due to poor commercial sales. On Wednesday, the largest U.S. power provider reported second quarter profit of 48 cents a share or $339 million. The company had earned 99 cents per share or $444 million in the corresponding period last year. Excluding one-time charges related to the failed Florida nuclear power project, the company posted net income of 87 cents a share.

Duke Energy Corp (DUK) Disappoints Wall Street, Misses Estimates

Revenues for the quarter climbed from $3.58 billion to $5.88 billion as the acquisition of Progress Energy last year boosted results, helping it beat revenue estimates. Analysts polled by Thompson Reuters were expecting 94 cents a share in earnings and $5.73 billion in revenues.

Seth Klarman’s 2021 Letter: Baupost’s “Never-Ending” Hunt For Information

Baupost's investment process involves "never-ending" gleaning of facts to help support investment ideas Seth Klarman writes in his end-of-year letter to investors. In the letter, a copy of which ValueWalk has been able to review, the value investor describes the Baupost Group's process to identify ideas and answer the most critical questions about its potential Read More

Sales to corporate clients weak

Duke Energy Corp (NYSE:DUK) has been struggling this year due to weak sales to corporations. Sales were also affected by mild weather that limited electricity usage. Duke Energy Corp (NYSE:DUK) generates electricity through natural gas, coal and nuclear plants, says Ernest Scheyder of Reuters. Duke Energy Corp (NYSE:DUK) CEO Lynn Good said in a statement that sales to large corporate clients affiliated to the wholesale distributor PJM Interconnection have been weak.

In a PJM Interconnection auction, wholesale prices plunged this year to as low as $16/megawatt hour from $110/megawatt hour last year due to overcapacity. It affected Duke Energy Corp (NYSE:DUK)’s earnings most. However, CEO Lynn Good said that it was temporary as wholesale prices are expected to rise to $126/megawatt hour next year. She expects prices to increase through 2015 and then moderate.

Duke Energy full year guidance

Despite missing the forecasts, Duke Energy Corp (NYSE:DUK) maintained its full year earnings guidance of $4.20 to $4.45 per share, in line with the consensus estimate of $4.33. Lynn Good remains optimistic as North Carolina and Ohio approve the rate increase requests. The company also expects to generate more costs savings from the $18 billion merger with Progress Energy last year.

Duke Energy Corp (NYSE:DUK) said it has resolved its short-term priorities, and the company is now positioning for the long-term. Duke Energy Corp (NYSE:DUK) shares went down 0.51 percent to $70.76 at 11:47 AM EDT.

Updated on

No posts to display