Duke Energy Corporation
) is set to report fourth quarter and full year 2012 results on
Feb 13, 2013. Last quarter it posted a 1.38% positive earnings
surprise. Let's see how things are shaping up prior to this
DUKE ENERGY CP (DUK): Free Stock Analysis
CONSOL EDISON (ED): Free Stock Analysis
ENTERGY CORP (ETR): Free Stock Analysis
ORMAT TECH INC (ORA): Free Stock Analysis
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Factors to Consider This Quarter
Duke Energy is loaded with a number of project developments,
especially in Arizona and California. These developments indicate
the company's commitment to meet electricity needs through
advanced and cleaner generation. Given the current pulse in the
U.S. market that favors sustainable green generation, we believe
these projects would bode well for Duke Energy going forward.
Overall, these activities would bring in revenue for the company.
Also, the acquisition of Progress Energy Inc. seems to be a smart
move made by the company. It has increased the company's ability
to build new power plants to meet future greenhouse-gas emissions
limits. However, the present unfavorable macro backdrop,
predominantly fossil-fuel based generation assets, tepid demand
for electricity, a sudden change of its CEO and pending
regulatory cases have clouded these positives.
Our proven model does not conclusively show that Duke Energy is
likely to beat earnings this quarter. This is because a stock
needs to have both a positive earnings Expected Surprise
Prediction (ESP) (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank of #1, 2 or 3 for this to happen. This is not
the case here as you will see below.
Negative Zacks ESP:
This is because the Most Accurate estimate stands at 64 cents per
share while the Zacks Consensus Estimate is at 65 cents per
share. That is a difference of -1.54%.
Zacks #3 Rank (Hold):
Duke Energy's Zacks Rank #3 (Hold) when combined with a negative
earnings ESP makes surprise prediction difficult.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
Ormat Technologies Inc.
) has earnings ESP of +50% and carries a Zacks Rank #2 (Buy).
Consolidated Edison Inc.
) has earnings ESP of +1.92% and carries a Zacks Rank #3 (Hold).
) has earnings ESP of +7.80% and carries a Zacks Rank #3