Duke Energy Q1 Results Top Estimates, Backs 2014 Outlook

(RTTNews) - Electric utility Duke Energy Corp. (DUK) reported Wednesday a net loss for the first quarter compared to a profit last year, despite revenue growth, hurt by a heft impairment charge. However, both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also reaffirmed its adjusted earnings guidance for the full-year 2014.

"I am proud of the way our team responded to challenging events in the first quarter -the severe winter weather and the Dan River coal ash release. Our employees demonstrated great discipline and resolve in meeting customer needs and our financial commitments during the quarter," President and CEO Lynn Good said in a statement.

Charlotte, North Carolina-based Duke Energy reported a net loss of $97 million or $0.14 per share for the first quarter, compared to net income of $634 million or $0.89 per share in the prior-year quarter. Loss from continuing operations for the latest quarter was $90 million or $0.13 per share.

Results for the latest-quarter include a hefty impairment charge of $1.23 per share, related to the write-down of the company's Midwest Generation business to its estimated fair value. The company announced in February that it has initiated a process to exit this business.

Excluding the charge, adjusted net income for the quarter was $1.17 per share, compared to last year's $1.02 per share. On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $1.12 per share for the quarter. Analysts estimates typically exclude special items.

The company said higher adjusted earnings were led by its largest business unit, Regulated Utilities, which benefited from revised customer rates and strong weather-normalized retail volumes.

Meanwhile, international Energy also experienced stronger results in Latin America despite unfavorable foreign currency exchange rates.

Total operating revenues for the quarter grew to $6.62 billion from $5.90 billion in the same quarter last year, and topped seven Wall Street analysts' consensus estimate of $6.44 billion.

Regulated utilities operating revenues increased to $5.81 billion from $5.06 billion, while international Energy operating revenues edged down $382 million from $392 million and commercial power operating revenues were $449 million, edging down from $452 million in the prior-year quarter.

Looking ahead to fiscal 2014, Duke Energy said it is on track to achieve adjusted earnings in the range to $4.45 to $4.60 per share. Street is currently looking for full-year 2014 earnings of $4.57 per share.

"We remain on track with our strategic initiatives to maximize value from our commercial businesses and to develop investment opportunities that underpin our financial objectives," Good added.

In Wednesday's regular trading session, DUK is currently trading at $73.68, up $0.61 or 0.83% on a volume of 0.94 million shares.