May 25, 2017 - 8:37 AM EDT
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Post Earnings Coverage as Duke Energy's Operating Revenue Grew 6.5%; Re-affirmed Outlook

Upcoming AWS Coverage on Southern Co. Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 25, 2017 / Active Wall St. announces its post-earnings coverage on Duke Energy Corp. (NYSE: DUK). The Company disclosed its first quarter fiscal 2017 financial results on May 09, 2017. The biggest US power Company by generation capacity surpassed earnings expectations. Register with us now for your free membership at:

One of Duke Energy's competitors within the Electric Utilities space, Southern Co. (NYSE: SO), reported on May 03, 2017, its Q1 2017 earnings results. AWS will be initiating a research report on Southern in the coming days.

Today, AWS is promoting its earnings coverage on DUK; touching on SO. Get our free coverage by signing up to:

Earnings Reviewed

For the quarter ended March 31, 2017, Duke Energy's total operating revenue rose 6.5% to $5.73 billion compared to operating revenues of $5.38 billion in Q1 2016. The Company's revenue numbers lagged behind analysts' consensus of $5.80 billion.

Duke Energy announced net income attributable to the Company of $716 million, or $1.02 per share, compared to $694 million, or $1.01 per share, in Q1 2016. Excluding items, Duke Energy reported earnings of $1.04 per share, below adjusted earnings of $1.14 in the prior year's same quarter, but marginally ahead of Wall Street's expectations of $1.03 per share. The Company's adjusted results were lower, primarily due to the absence of International Energy, which was sold in December 2016, and warm winter weather.

Segment Results

During Q1 2017, Duke Energy's Electric Utilities and Infrastructure segment recognized segment income of $635 million compared to $664 million in Q1 2016, a decrease of $0.03 per share, excluding share dilution of $0.02 per share. Lower quarterly results at Electric Utilities and Infrastructure were primarily driven by warm winter weather compared to the prior year, across all jurisdictions. This unfavorable driver was partially offset by Lower O&M expenses, and ongoing cost savings initiatives and higher retail revenues from increased pricing, riders, and volumes driven by new rates in Duke Energy Progress South Carolina, base rate adjustments in Florida, and energy efficiency rider revenues at Duke Energy Carolinas.

Duke Energy's Gas Utilities and Infrastructure recorded Q1 2017 reported and adjusted segment income of $133 million compared to $32 million in Q1 2016. Higher quarterly results at Gas Utilities and Infrastructure were primarily driven by Contribution from Piedmont Natural Gas, which was acquired in October 2016, and share dilution and higher earnings from mid-stream pipeline investments.

For Q1 2017, Duke Energy's Commercial Renewables segment reported segment income of $25 million compared to $26 million in Q1 2016. The segment's higher earnings from new wind projects brought on-line in late 2016 were offset by lower solar ITCs in the current year.

During Q1 2017, on a rolling 12-month basis, Duke Energy's weather-normalized retail load growth was 0.2%. This was largely driven by lower-than-expected 2016 results in the industrial sector and the loss of leap day in Q1 2016. The Company achieved growth of 0.1%, even with the loss of the leap day in the prior year. Taking that into consideration, sales volumes in the reported quarter were up over 1%.

Residential sector grew 0.5% on a rolling 12-month basis, driven by strong new customer growth of 1.4%, particularly in the Carolinas and Florida. For Duke Energy's industrial sector was down 0.6% on a rolling 12-month basis, industrial performance in the quarter was strong with a 0.8% growth.


Based upon the results through Q1 2017, Duke Energy remains on track to achieve its 2017 adjusted diluted earnings guidance range of $4.50 to $4.70 per share.

Stock Performance

On Wednesday, May 24, 2017, the stock closed the trading session at $84.69, slightly up 0.46% from its previous closing price of $84.30. A total volume of 2.97 million shares have exchanged hands, which was higher than the 3-month average volume of 2.77 million shares. Duke Energy's stock price advanced 4.67% in the last three months, 13.78% in the past six months, and 10.00% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 9.11%. The stock is trading at a PE ratio of 22.74 and has a dividend yield of 4.04%.

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SOURCE: Active Wall Street

Source: ACCESSWIRE (May 25, 2017 - 8:37 AM EDT)

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