Duke Energy Q1 Results Preview: Here's what to expect from the U.S. utility

Duke Energy (NYSE:DUK) is expected to report decent earnings growth when it reports Q1 results on Tuesday, May 7th, before market open.

The consensus EPS Estimate is $1.38 (+15.0% Y/Y).

Shares of the utility company, which is focusing on cost cuts and transitioning to fully regulated utility, with clean energy investment plans, have risen 3% YTD, underperforming the broader market.

CEO Lynn Good has recently said that half of Duke's (DUK) $73B capex plan for the next five years is directed to the power grid for resilience, new power generation including renewables, EV infrastructure expansion and cybersecurity.

The company (DUK) also expects its power demand will rise by 1.5%-2% annually in the near term and possibly more, Good said, and the company sees power demand growing at an average annual rate of 2.5% over the next 15 years, with ~40% of the increase coming from greater adoption of electric vehicles.

Shares of Duke Energy, however, fell after reporting Q4 adjusted earnings that missed expectations, as rising interest rates have made raised costs for utility companies.

Nevertheless, the company had the lowest short interest of 1.09% of shares float at the end of March, among S&P 500 utility stocks.

Over the last 2 years, DUK has beaten EPS estimates 25% of the time and has beaten revenue estimates 63% of the time.

Over the last 3 months, EPS estimates have seen 3 upward revisions and 4 downward. Revenue estimates have seen 3 upward revisions and 0 downward.

SA analysts have a Hold rating on the stock, with a 3.33 score.

What analysts say:

"DUK has a large customer base in North Carolina, South Carolina, and Florida. These regions are all prone to hurricanes and other severe weather events, which can cause significant damage to infrastructure and lead to costly repairs and lost revenue," Envision Research said in a recent article, adding that the company's reliance on coal adds to its risks.