Duke Energy Corp. on Feb. 20 posted fourth-quarter 2017 adjusted earnings of $656 million, or 94 cents per share, an increase from the fourth-quarter 2016 adjusted earnings of $565 million, or 81 cents per share, thanks to cost management efforts and favorable weather.
The result beats the S&P Capital IQ normalized consensus EPS estimate for the most recent quarter of 92 cents.
The company's regulated utilities and infrastructure segment reported fourth-quarter 2017 adjusted income of $609 million, up from $483 million in the same quarter in 2016. The increase was primarily driven by favorable weather and lower operation and maintenance expense.
The gas and infrastructure segment recorded adjusted income of $114 million in the 2017 fourth quarter, compared with $89 million in the prior-year period. The increase was primarily driven by customer growth, higher integrity management investments at Piedmont Natural Gas Co. Inc. and improved earnings from increased investment in the Atlantic Coast Pipeline.
Duke Energy's commercial renewables segment posted adjusted income of $15 million for the most recent quarter, compared with $10 million in the fourth quarter of 2016. The company cited new wind project brought online in late 2016 and improved wind resources as key drivers for improved quarterly results.
The company reported fourth-quarter 2017 GAAP earnings of $703 million, or $1.00 per share, compared with a loss of $227 million, or a loss of 33 cents per share, in the corresponding quarter of 2016. The loss in 2016 was primarily due to a loss on the sale of the company's international energy segment, Duke said in its earnings release.
On a full-year basis, Duke Energy posted adjusted earnings of $3.20 billion, or $4.57 per share, in 2017, compared with $3.24 billion, or $4.69 per share, a year earlier.
The S&P Capital IQ normalized EPS consensus estimate for Duke's full-year 2017 earnings was $4.56. "By focusing on cost management and operational excellence, we achieved strong financial results, ending the year near the high end of our narrowed guidance range," said Duke Energy chairman, president and CEO Lynn Good.
The year-over-year decrease in adjusted earnings was driven by unfavorable weather and the absence of international energy segment, the company said.
Full-year GAAP earnings grew to $3.06 billion, or $4.36 per share, in 2017, from $2.15 billion, or $3.11 per share, in 2016.
Duke Energy's operating revenues totaled $23.57 billion in 2017, an increase from $22.74 billion in 2016.
The company initiated 2018 adjusted EPS guidance range of $4.55 to $4.85, and reaffirmed and extended its long-term adjusted EPS growth rate range of 4% to 6% to 2022, anchored to the midpoint of the original 2017 adjusted EPS range of $4.60.
"Looking forward, we have the right long-term strategy in place, supported by a solid capital growth plan," Good said. "Our vision is clear – we are investing in infrastructure our customers value and delivering sustainable growth for our investors."
