Duke Energy Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Duke Energy (NYSE:DUK) will unveil its latest earnings on Thursday, November 8, 2012. Duke Energy offers electric power and gas distribution operations and other energy services in North and South America.

Duke Energy Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.45 per share, a decline of 3.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.43. Between one and three months ago, the average estimate moved down. It has risen from $1.41 during the last month. Analysts are projecting profit to rise by 2.5% compared to last year’s $4.27.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 7 cents, reporting net income of $1.02 per share against a mean estimate of profit of 95 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $6.79 billion in revenue this quarter, a rise of 71.5% from the year-ago quarter. Analysts are forecasting total revenue of $20.06 billion for the year, a rise of 38.1% from last year’s revenue of $14.53 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.06 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.38 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 43.3% to $6.14 billion while assets rose 9.5% to $6.49 billion.

Stock Price Performance: Between August 9, 2012 and November 2, 2012, the stock price fell $3.15 (-4.6%), from $68.09 to $64.94. The stock price saw one of its best stretches over the last year between May 30, 2012 and June 8, 2012, when shares rose for eight straight days, increasing 5.9% (+$1.30) over that span. It saw one of its worst periods between August 13, 2012 and August 23, 2012 when shares fell for nine straight days, dropping 4.4% (-$2.98) over that span.

Key Stats:

Last quarter’s earnings rise was a switch from preceding drops, so the upcoming earnings announcement is a chance to build on last quarter’s result. Net income fell in the third quarter of the last fiscal year, the fourth quarter of the last fiscal year and the first quarter before snapping that run with a profit increase in the second quarter.

On the top line, the company is looking to build a positive trend after last quarter’s growth snapped a string of drops. Revenue fell 2.2% in the fourth quarter of the last fiscal year and 0.9% in the first quarter before climbing in the second quarter.

A Look Back: In the second quarter, profit rose 2.1% to $444 million (99 cents a share) from $435 million (33 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 1.2% to $3.58 billion from $3.53 billion.

Analyst Ratings: There are mostly holds on the stock with 14 of 17 analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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