Duke Energy's Q3 Earnings Miss Estimates, Revenues Increase Y/Y

Core Insights - Duke Energy Corporation's third-quarter 2024 adjusted earnings per share (EPS) of $1.62 fell short of the Zacks Consensus Estimate of $1.73 by 6.4% and declined 16.5% from $1.94 in the same quarter last year [1] - The decline in adjusted earnings was attributed to a higher effective tax rate, storm costs, increasing interest expenses, and higher depreciation on a growing asset base [1] Financial Performance - Total operating revenues for the quarter were $8.15 billion, a 2% increase from $7.99 billion year-over-year, and exceeded the Zacks Consensus Estimate of $8 billion by 1.9% [3] - The Regulated electric unit generated operating revenues of $7.78 billion, up 1.8% year-over-year, contributing 95.4% to total revenues [3] - Revenues from the Regulated natural gas business reached $298 million, reflecting a 4.9% year-over-year increase [3] - Non-regulated Electric and Other segment revenues were $81 million, marking a 15.7% increase year-over-year [4] Operating Expenses and Income - Total operating expenses amounted to $6.02 billion, up 2.1% year-over-year, primarily due to higher fuel costs, depreciation, and natural gas expenses [5] - Operating income increased by 1.5% to $2.14 billion from $2.11 billion in the previous year [5] - Interest expenses rose to $872 million from $774 million in the third quarter of 2023 [5] Customer Metrics - The average number of customers in the Electric Utilities unit increased by 2% year-over-year [6] - Total electric sales volumes declined by 0.5% year-over-year to 72,732 gigawatt-hours [6] Segment Performance - Electric Utilities & Infrastructure segment adjusted earnings were $1,464 million, down from $1,531 million in the third quarter of 2023 [7] - Gas Utilities & Infrastructure segment reported a loss of $22 million compared to earnings of $15 million in the prior year [7] - The Other segment incurred a loss of $206 million, worsening from a loss of $59 million in the same quarter last year [8] Financial Condition - As of September 30, 2024, cash and cash equivalents stood at $376 million, up from $253 million on December 31, 2023 [9] - Long-term debt increased to $76.52 billion from $72.45 billion on December 31, 2023 [9] Cash Flow - For the first nine months of 2024, net cash from operating activities was $8.95 billion, compared to $7.31 billion in the same period last year [10] Guidance - Duke Energy reaffirmed its 2024 adjusted EPS guidance, expecting a range of $5.85-$6.10, with the Zacks Consensus Estimate at $5.98 per share [11] - The company projects long-term EPS growth of 5-7% through 2028 [11] Market Position - Duke Energy currently holds a Zacks Rank 2 (Buy) [12]