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]

Financial Performance - Duke Energy reported GAAP EPS of $1.60 for Q3 2024, a slight increase from $1.59 in Q3 2023, while adjusted EPS decreased to $1.62 from $1.94 due to higher effective tax rates and storm costs [350]. - GAAP reported earnings for the three months ended September 30, 2024, were $1,226 million, with an EPS of $1.60, compared to $1,213 million and an EPS of $1.59 for the same period in 2023 [352]. - Adjusted earnings for the three months ended September 30, 2024, were $1,236 million, resulting in an adjusted EPS of $1.62, down from $1,487 million and an adjusted EPS of $1.94 in the prior year [352]. - For the nine months ended September 30, 2024, GAAP reported EPS increased to $4.17 from $2.27 in the same period of 2023, primarily due to higher impairments on the sale of the Commercial Renewables business in the prior year [354]. - Adjusted EPS for the nine months ended September 30, 2024, was $4.24, compared to $4.05 for the same period in 2023, driven by growth from rate increases and higher sales volumes [354]. - Operating revenues for the three months ended September 30, 2024, were $7,852 million, an increase of $137 million from $7,715 million in 2023 [358]. - Operating revenues for Duke Energy Carolinas increased by $1,256 million (20.4%) for the nine months ended September 30, 2024, compared to the same period in 2023 [369]. - Operating revenues for Duke Energy Progress increased by $494 million (10.2%) for the nine months ended September 30, 2024, compared to the same period in 2023 [380]. - Operating revenues for the nine months ended September 30, 2024, increased to $1,139 million, up from $1,119 million in 2023, representing a variance of $20 million [399]. Customer Impact and Service Reliability - Approximately 3.5 million customers were impacted by Hurricane Helene, marking the largest number of outages from a single event in Duke Energy's history [338]. - Duke Energy's ongoing investments in grid hardening and self-healing technologies aim to improve service reliability during severe weather events [338]. - The average number of customers for Duke Energy Carolinas increased by 2.2% for the nine months ended September 30, 2024 [370]. - The average number of customers increased by 1.6% compared to the prior year, indicating growth in the customer base [402]. - The average number of customers for Duke Energy Florida increased by 2.2% compared to the prior year [386]. Regulatory and Rate Cases - Duke Energy Carolinas filed a rate case in January 2024, the first since 2018, reflecting $1.5 billion in transmission and distribution investments, with new rates effective August 1, 2024 [340]. - Duke Energy Florida proposed a three-year rate plan starting January 2025, including $4.9 billion in investments to reduce outages and expand solar generation [340]. - Duke Energy Indiana filed a general rate case requesting a $492 million revenue increase, the first since 2019, to support grid reliability and meet environmental regulations [340]. - The company is pursuing cost recovery for storm-related expenditures through regulatory frameworks, focusing on balancing bill impacts for customers [338]. - Cost recovery for future expenditures will be pursued through the normal ratemaking process with federal and state utility commissions [416]. Environmental Initiatives and Challenges - Duke Energy's clean energy transition includes the launch of the PowerPair program, which enrolled over 1,300 customers in its first three months, offering incentives up to $9,000 for solar and battery installations [338]. - The company is actively participating in legal challenges to the EPA's 2024 CCR Rule, which expands regulatory requirements for coal ash management [342]. - EPA Rule 111 requires existing coal-fired power plants to reduce GHG emissions by 90% starting in 2032, impacting future generation investments [416]. - Duke Energy is participating in legal challenges to EPA Rule 111, which could materially impact the company [416]. - Duke Energy's Portfolio 3 is recommended for an orderly energy transition, aiming to exit coal by 2035 and enhance energy efficiency and demand response options [417]. Operating Expenses and Financial Metrics - Total operating expenses for the three months ended September 30, 2024, were $5,743 million, up from $5,678 million in the prior year, reflecting a $143 million increase in depreciation and amortization [358]. - Operating expenses for Duke Energy Carolinas increased by $858 million (18.5%) primarily due to higher claim reserves related to captive insurance and increased employee benefit obligations [369]. - Operating expenses increased by $211 million due to higher fuel used in electric generation and purchased power, partially offset by lower natural gas prices [383]. - Interest expense increased due to higher outstanding debt balances and interest rates across both Electric and Gas Utilities segments [360][361]. - Interest expenses increased across the board due to higher outstanding debt balances and interest rates [389]. Cash Flow and Capital Expenditures - Cash flows from operating activities increased to $8,951 million, up from $7,309 million in the prior year, reflecting a variance of $1,642 million [409]. - Capital, investment, and acquisition expenditures totaled $(9,199) million, a decrease of $141 million compared to $(9,340) million in 2023 [412]. - Net cash provided by financing activities was $990 million, down from $2,413 million in the previous year, a decrease of $1,423 million [414]. - Interest expense increased to $135 million, up from $120 million, primarily due to higher outstanding debt balances and interest rates [399]. Segment Performance - The segment loss for Gas Utilities and Infrastructure was $25 million for the three months ended September 30, 2024, compared to a profit of $15 million in the same period of 2023 [361]. - Operating income for Gas Utilities and Infrastructure decreased to $13 million from $33 million year-over-year, reflecting a $20 million decline [361]. - The nine-month results for Gas Utilities and Infrastructure showed a $32 million increase in operating revenues compared to the previous year, driven by various rate increases [363]. - Operating income for Duke Energy Florida increased by $71 million, reaching $1,336 million compared to $1,265 million in the prior year [390]. - Duke Energy Ohio's operating revenues increased by $16 million, driven by a $35 million increase in retail revenue riders and a $31 million increase from higher pricing in rate cases [393].

Core Viewpoint - Duke Energy reported quarterly earnings of $1.62 per share, missing the Zacks Consensus Estimate of $1.73 per share, and down from $1.94 per share a year ago, indicating an earnings surprise of -6.36% [1][2] Financial Performance - The company posted revenues of $8.15 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.98%, compared to $7.99 billion in the same quarter last year [2] - Over the last four quarters, Duke Energy has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Duke Energy shares have increased approximately 17.1% since the beginning of the year, while the S&P 500 has gained 24.3% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.65 on revenues of $7.66 billion, and for the current fiscal year, it is $5.98 on revenues of $30.47 billion [7] - The estimate revisions trend for Duke Energy is currently favorable, which may influence future stock movements [6][5] Industry Context - The Utility - Electric Power industry is ranked in the top 37% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

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Core Insights - Duke Energy has released its third-quarter 2024 financial results, which will be discussed in an investor presentation [1][2] - The company is one of America's largest energy holding companies, serving 8.4 million electric customers and 1.7 million natural gas customers across several states [2] Financial Performance - The financial results for the third quarter of 2024 are available on Duke Energy's investor website [1] - An investor presentation is scheduled to discuss these results and other business updates [1] Business Operations - Duke Energy is focused on a clean energy transition, aiming for net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050 [3] - The company is investing in electric grid upgrades and cleaner energy sources, including expanded energy storage, renewables, natural gas, and nuclear [3]

Financial Performance - Third-quarter 2024 reported EPS was $1.60 and adjusted EPS was $1.62, compared to reported EPS of $1.59 and adjusted EPS of $1.94 in the same quarter of 2023[1]. - The adjusted EPS guidance for 2024 is reaffirmed in the range of $5.85 to $6.10, trending towards the lower half of the range[4]. - Net income available to common stockholders was $1,226 million, resulting in an earnings per share (EPS) of $1.60 for the same period[35]. - For the nine months ended September 30, 2024, reported earnings for Electric Utilities and Infrastructure segment reached $3,562 million, with adjusted earnings of $3,600 million[38]. - Net income available to common stockholders for the nine months was $3,211 million, leading to an EPS of $4.17[38]. - The company reported a basic and diluted earnings per share of $4.17 for the nine months ended September 2024, compared to $2.27 in the prior year, representing an increase of 83.7%[57]. - Net income for the nine months ended September 30, 2024, was $3,387 million, compared to $1,878 million for the same period in 2023, reflecting an increase of 80.1%[60]. - The company reported a total of $1,744 million in net income available to common stockholders, indicating strong profitability[68]. Segment Performance - Electric Utilities and Infrastructure reported segment income of $1,451 million, slightly up from $1,447 million in Q3 2023[8]. - Gas Utilities and Infrastructure reported a segment loss of $25 million, down from a segment income of $15 million in Q3 2023[10]. - Other segment recognized a loss of $222 million, compared to a loss of $59 million in the same quarter of 2023[13]. - Reported earnings for Electric Utilities and Infrastructure segment were $1,451 million, with adjusted earnings totaling $1,464 million for the three months ended September 30, 2024[35]. - Operating income for the nine months ended September 30, 2024, was $5,814 million, reflecting a decrease of $14 million compared to the previous period[64]. - Total operating revenues for Duke Energy Corporation reached $21,848 million, with regulated electric revenues contributing $20,140 million and regulated natural gas revenues at $1,497 million[68]. Costs and Expenses - Total storm restoration costs are estimated to be between $2.4 billion and $2.9 billion, impacting multiple subsidiaries[17]. - The effective tax rate for the third quarter of 2024 was 11.2%, significantly higher than 2.8% in the same quarter of 2023[15]. - Total operating expenses for the nine months ended September 2024 were $17,208 million, compared to $16,679 million in the prior year, marking an increase of 3.2%[57]. - Total operating expenses for the three months ended September 30, 2024, were $6,017 million, up from $5,743 million in the prior year, reflecting an increase of 4.8%[62]. - Interest expense increased to $2,513 million for the nine months ended September 2024, compared to $2,221 million in the prior year, reflecting a rise of 13.2%[57]. Customer and Sales Metrics - Duke Energy serves 8.4 million electric customers and 1.7 million gas customers across several states[29]. - Residential electric sales increased by 2.3% year-over-year to 26,756 GWh for the three months ended September 2024, while total retail sales rose by 0.6% to 60,451 GWh[90]. - The average number of residential customers grew by 2.2% to 7,430,021, contributing to a total of 8,514,640 retail customers across all segments[90]. - Total consolidated electric sales decreased by 0.5% to 72,732 GWh for the three months ended September 2024, but increased by 3.6% to 198,318 GWh for the nine months ended[90]. Regulatory and Compliance - The company is focused on a clean energy transition, aiming for net-zero carbon emissions from electricity generation by 2050[30]. - The ability to recover costs through regulatory processes remains a critical factor affecting liquidity and asset values[34]. - The company plans to implement new rate cases in North Carolina and South Carolina, expected to positively impact revenues in 2024[53]. - Duke Energy Corporation's regulatory assets totaled $2,300 million, highlighting the company's investments in compliance and infrastructure[70]. Operational Challenges - The company faced operational interruptions and risks associated with natural gas distribution and transmission activities, impacting financial performance[34]. - The influence of weather and natural phenomena, including severe storms and climate change, poses risks to operations and cash flows[34]. - The company recorded $62 million in impairment of assets and other charges related to the North Carolina rate case settlement[48]. Asset and Equity Position - Total assets increased to $183,566 million as of September 30, 2024, up from $176,893 million at December 31, 2023, representing a growth of approximately 3.8%[59]. - Long-term debt increased to $76,524 million as of September 30, 2024, compared to $72,452 million at December 31, 2023, representing a rise of 5.7%[59]. - Total equity attributable to Duke Energy Corporation stockholders was $49,133 million, reflecting the company's financial stability[72].

Core Points - Duke Energy Florida will reduce residential customer bills by $9.77 starting January 2025 due to an annual adjustment for fuel costs and other clause adjustments [1][2] - Commercial and industrial customers will experience bill decreases ranging from 5.1% to 11.1%, depending on various factors [2] - The company is committed to enhancing the electric grid's security, reliability, and resiliency while prioritizing affordability for customers [3] Company Overview - Duke Energy Florida, a subsidiary of Duke Energy, has an energy capacity of 12,300 megawatts and serves 2 million customers across a 13,000-square-mile area in Florida [5] - Duke Energy, a Fortune 150 company, serves 8.4 million customers across multiple states and owns a total energy capacity of 54,800 megawatts [6] Future Considerations - The company plans to file for storm cost recovery related to hurricanes Debby, Helene, and Milton in December 2024, which may affect rates as early as March 2025 [4] - Duke Energy is focused on a clean energy transition, aiming for net-zero methane emissions by 2030 and net-zero carbon emissions by 2050, while investing in electric grid upgrades and cleaner energy sources [7]

Core Viewpoint - Duke Energy's Carolinas Resource Plan has received approval from the North Carolina Utilities Commission (NCUC), allowing the company to advance its clean energy initiatives while ensuring affordability and reliability for customers [1][4]. Background - Duke Energy submitted its Carolinas Resource Plan on August 17, 2023, outlining a strategy for cleaner energy in North and South Carolina while maintaining grid reliability and competitive rates [2]. - The company provided supplemental modeling to state regulators on January 31, 2024, due to an unprecedented increase in projected customer demand [3]. NCUC Order - The NCUC's order accepts the July settlement, emphasizing the importance of affordable rates and the need for Duke Energy to invest in its system to ensure reliable service as demand grows [5]. - The order directs Duke Energy to pursue specific near-term actions to maintain reliable service and keep rates below the national average [5]. Near-Term Resources - The NCUC approved the following near-term resource additions: - Solar: 3,460 MW of new solar generation, totaling 6,700 MW by 2031 - Battery: 1,100 MW of battery energy storage, totaling 2,700 MW by 2031 - Onshore Wind: 1,200 MW operational by 2033, with at least 300 MW by 2031 - Combustion Turbines: Four CTs by 2030, adding 900 MW beyond the previous order - Combined Cycles: Three CC units by 2031, adding 2,720 MW beyond the previous order [6]. Long-Term Resources - The NCUC approved continued development for: - Bad Creek II: $165 million in early development costs - Nuclear: $440 million in early development costs, targeting 300 MW by 2034 and 600 MW by 2035 - Offshore Wind: Evaluation of offshore wind's role, targeting 800 to 1,100 MW by 2034 and 2,200 to 2,400 MW by 2035 [7]. Modeling and Key Findings - The NCUC confirmed Duke Energy's recommended portfolio as the "reference portfolio" and increased the minimum planning reserve margin to 22% by 2031 [8]. - The requirement for a 70% carbon reduction by 2030 was waived, with an agreement to pursue this goal as soon as possible [8]. - The plan anticipates a 0.9% increase in inflation-adjusted bills by 2038 [8]. Next Steps - The Public Service Commission of South Carolina (PSCSC) will issue an order on or before November 26, 2024, after which Duke Energy will begin executing the plan and developing the modeling for the 2025 plan update [9]. Company Overview - Duke Energy, a Fortune 150 company, serves 8.4 million customers across multiple states and owns 54,800 MW of energy capacity [11]. - The company is focused on a clean energy transition, targeting net-zero carbon emissions from electricity generation by 2050 and investing in grid upgrades and cleaner generation [12].

Core Points - Duke Energy is offering free home energy assessments to help customers save on energy costs as winter approaches [2][3] - The company emphasizes the importance of energy efficiency and provides various programs and tips for customers to manage their energy usage effectively [4][6] Group 1: Energy-Saving Programs - The Home Energy House Call program provides customers with a free energy efficiency kit, customized usage reports, and expert recommendations to enhance energy savings [2] - The Smart $aver® home improvement rebate program encourages customers to insulate and seal their homes to maintain warmth and reduce energy costs [3] - The Flex Savings Option allows customers to lower energy costs by shifting usage to off-peak times, utilizing smart meter technology [4] Group 2: Usage Monitoring and Tips - Customers can receive Usage Alerts to better predict electricity spending and adjust their habits accordingly [5] - Low- to no-cost energy-saving tips include reducing thermostat settings, changing air filters regularly, and sealing air leaks, which can save 10% to 20% in heating costs [6] - Replacing standard bulbs with LEDs can lead to significant savings, with potential savings of up to $480 over the bulbs' lifetime [6] Group 3: Company Overview - Duke Energy serves 8.4 million customers across multiple states and has a total energy capacity of 54,800 megawatts [8] - The company is committed to a clean energy transition, aiming for net-zero methane emissions by 2030 and net-zero carbon emissions by 2050 [9]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Duke Energy despite higher revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - Duke Energy is expected to report quarterly earnings of $1.73 per share, reflecting a year-over-year decrease of 10.8% [3]. - Revenue projections stand at $8 billion, indicating no growth compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 3.3% higher in the last 30 days, suggesting a reassessment by analysts [4]. - The Most Accurate Estimate for Duke Energy is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.55%, indicating a bearish outlook [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likelihood of actual earnings deviating from consensus estimates, with positive readings being more predictive [7][8]. - Duke Energy's combination of a negative Earnings ESP and a Zacks Rank of 2 complicates predictions of an earnings beat [10]. Historical Performance - In the last reported quarter, Duke Energy exceeded earnings expectations by 16.83%, having beaten consensus EPS estimates three times over the last four quarters [11][12]. Industry Comparison - Avista, another player in the electric utility sector, is expected to report earnings of $0.14 per share, down 26.3% year-over-year, with revenues projected at $394.1 million, up 3.8% [16]. - Avista's consensus EPS estimate has been revised 12.6% lower, but a higher Most Accurate Estimate results in an Earnings ESP of 33.33%, indicating a likely earnings beat [17].