With a market cap of $82.7 billion, North Carolina-based Duke Energy Corporation (DUK) is one of the largest energy holding companies in the U.S. The utility company serves customers through its Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewable units. It intends to release its fiscal 2024 second-quarter financial results before the market opens on Tuesday, Aug. 6.
Ahead of the event, analysts expect DUK to report a profit of $1.01 per share, up 11% from $0.91 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in two of the past four quarters while missing on two other occasions.
Moreover, increasing residential and commercial customer demand in its U.S. sun-belt service territory boosted its performance in the previous quarter, resulting in a 20% year-over-year improvement in its EPS to $1.44, which surpassed the consensus estimate by 3.6%.
Over the longer term, analysts expect Duke Energy to report EPS of $5.97 in fiscal 2024, reflecting a rise of 7.4% from $5.56 in fiscal 2023.
Shares of Duke Energy have dipped 14.6% over the past 52 weeks, trailing behind both the broader S&P 500 Index's ($SPX) 19.2% rise. However, the stock has outperformed the S&P 500 Utilities Sector SPDR's (XLU) 4.1% increase over the same period.
On May 7, DUK stock rose 1.8% following the release of Q1 earnings results with a net income of $1.1 billion. Despite exceeding its bottom-line expectations, it failed to beat its topline estimates. The Fortune 500 company reaffirmed its full-year EPS, projecting between $5.85 and $6.10. It is also steadfastly progressing with its comprehensive generation transition strategy, utilizing a diverse range of energy sources to meet the increasing power demand.
Analysts' consensus opinion on Duke Energy stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 17 analysts covering the stock, eight recommend a "Strong Buy," one analyst suggests a “Moderate Buy,” and eight advise a "Hold."
Although the stock currently trades above its mean price target of $106.73, the Street-high target of $120 indicates a modest potential upside of 10.5% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
