Ahead Of Duke Energy Q4 Results

(RTTNews) - Electricity provider Duke Energy Corp. (DUK) is systematically and strategically increasing its regulated business mix through a series of acquisitions and divestitures. The company is also focused on creating long-term growth and value for customers and shareholders, with investments that will modernize system, both its generation and its growth for the benefit of customers.

The company expects that internationals' earnings have stabilized in 2015 and have the opportunity for modest growth in 2016, largely driven by an expectation for improved high growth dispatch, reflecting higher water inflows and lower market power crises.

Further, meteorologists are forecasting a strong Alminio weather pattern through early 2016, which could lead to increased rainfall in Southeastern Brazil. Currency exchange rates are expected to remain volatile but the inflationary provisions in the company's contracts in Brazil can help to mitigate some of the currency devaluation. Duke Energy also expects Brent crude oil prices to stabilize in 2016.

The company is likely to release its fourth-quarter numbers before the bell on Thursday, February 18, with analysts polled by Thomson Reuters expecting earnings of $0.90 per share on revenue of $6.29 billion. Analysts' estimate typically exclude certain special items.

The company narrowed its 2015 earnings guidance range to $4.55 - $4.65 per share from the prior issued range of $4.55 - $4.75 per share, reflecting mild October weather, as well as storm expenses, unfavorable foreign currency trends and the potential for extending bonus depreciation. The extension of bonus will modestly increase the company's effective tax for the year. Wall Street looks for earnings of $4.57 per share for 2015.

In the previous quarter, the company's attributable net income dropped to $932 million from $1.274 billion. Earnings per share fell to $1.35 from $1.80.

Adjusted earnings per share were $1.47, compared to $1.40 for the third quarter of 2014, amid warmer weather. On average, 16 analysts polled by Thomson Reuters expected earnings of $1.52 per share for the quarter. Analysts' estimates typically exclude special items.

Operating revenues grew to $6.483 billion from $6.395 billion in the previous year. Analysts expected revenues of $6.87 billion.