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Duke Energy Q3 Earnings: Can NYSE:DUK Hit Its $1.80 EPS Target?

in EARNINGS/INVESTING IDEAS by

Duke Energy Corporation (NYSE:DUK) is scheduled to report Q3 earnings results on November 5, 2020.

The company is expected to report earnings of $1.80/share on revenue of $7.337 billion. The consensus earnings per share (EPS) of $1.80/share is based on a poll of 13 analysts and represents a growth in eps of 0.4% over the same quarter last year, when the company reported earnings of $1.79/share.

The revenue forecast of $7.337 billion based on a poll of 6 analysts implies a year-over-year (YoY) growth in revenue of 5.7%. Last year the company reported $6.94 billion in revenue for the quarter.

Expected to report EPS growth of 0.4% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $7,336.85 $6,940.00 5.7%
EPS $1.80 $1.79 0.4%

Earnings Call Trends

Historically, management has exceeded analyst expectations 5 out of the last 8 tracked quarters, and missed expectations 3 quarters.

What are your expectations from Duke Energy Corporation for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $1.05 $1.08 2.9% Beat
Q1, 2020 $1.18 $1.14 −3.7% Missed
Q4, 2019 $0.87 $0.91 4.4% Beat
Q3, 2019 $1.67 $1.79 7.2% Beat
Q2, 2019 $0.98 $1.12 13.9% Beat
Q1, 2019 $1.25 $1.24 −0.7% Missed
Q4, 2018 $0.89 $0.84 −5.9% Missed
Q3, 2018 $1.51 $1.65 9.1% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by falling −3.4%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 10, 2020 $86.61 $83.67 −3.4% Decline
May 12, 2020 $81.66 $81.89 0.3% Increase
February 13, 2020 $97.92 $101.28 3.4% Increase
November 8, 2019 $92.58 $89.95 −2.8% Decline

Fundamentals And Technical Analysis

Duke Energy Corporation is currently trading at $91.55/share, down −1.6% for the day. The company is trading at approximately 88.2% of its 52-week high of $103.79/share. The company’s stock price is up 9.4% since the last earnings report and down −1.0% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 64.43 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:DUK Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 32.60 and a forward P/E multiple of 18.32.

Duke Energy Corporation’s current share price also implies a price-to-book (P/B) multiple of 1.54. The following table summarizes some other key fundamental ratios:

Data as of October 28, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $91.55
P/E Ratio 32.6x
P/E Ratio (Fwd) 18.3x
PEG Ratio −0.9
Total Debt / Total Capital 48.0%
Levered Free Cash Flow -$2.25 billion
EV / EBITDA 12.3x

Finbox

Duke Energy Corporation is a large-cap stock with a market capitalization of $68.439 billion and a total enterprise value of $137.2 billion. The company operates in the Utilities sector and the Electric Utilities industry.

Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. It operates through three segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables. The Electric Utilities and Infrastructure segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest; and uses coal, hydroelectric, natural gas, oil, renewable sources, and nuclear fuel to generate electricity. It also engages in the wholesale of electricity to municipalities, electric cooperative utilities, and load-serving entities. This segment serves approximately 7.8 million retail electric customers in 6 states in the Southeast and Midwest regions of the United States covering a service territory of approximately 91,000 square miles; and owns approximately 51,144 megawatts (MW) of generation capacity. The Gas Utilities and Infrastructure segment distributes natural gas to residential, commercial, industrial, and power generation natural gas customers; and owns, operates, and invests in pipeline transmission and natural gas storage facilities. It has approximately 1.6 million customers, including 1.1 million customers in North Carolina, South Carolina, and Tennessee, as well as 535,000 customers in southwestern Ohio and northern Kentucky. The Commercial Renewables segment acquires, owns, develops, builds, and operates wind and solar renewable generation projects, including nonregulated renewable energy and energy storage services to utilities, electric cooperatives, municipalities, and commercial and industrial customers. It has 22 wind, 126 solar, and 1 battery storage facilities, as well as 11 fuel cell locations with a capacity of 2,282 MW across 19 states. The company was formerly known as Duke Energy Holding Corp. and changed its name to Duke Energy Corporation in April 2005. The company was incorporated in 2005 and is headquartered in Charlotte, North Carolina.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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