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I predict the stock to report a $1.27 earnings number on $6.344 billion in revenue. Analysts are predicting an average of $0.80 and $6.25 billion. Duke is definitely a solid name to hold onto to during difficult times and the 4% dividend yield offers pretty good protection for when the stock price drops. As earnings season continues we’ve seen the utility sector of the market show some chinks in the armor as the ten-year treasury yield has begun to climb. Duke has been the beneficiary stock recently of falling yields and now is becoming a victim of rising yields. I selected this stock for my portfolio of thirty back in May of 2013 because I liked the prospect of having a great dividend and a business which is always going to have a customer. During the past year the stock price has increased 11.74% excluding dividends and only just in the past two weeks has it lost 10% due to rising treasury yields. With that said I’d like to make my prediction for Duke Energy for the fourth quarter of 2014 that the company will be announcing on February 18, 2015 before the market opens. DUKE ENERGY CORPORATION (NYSE: DUK ) INCOME STATEMENT Fiscal year ends in December. USD in millions except per share data. 2014-12 2014-09 2014-06 2014-03 2013-12 2013-09 Revenue $6,344 $6,395 $5,949 $6,624 $6,112 $6,709 Cost of revenue $2,275 $2,307 $2,287 $2,531 $2,281 $2,474 Gross profit $4,069 $4,088 $3,662 $4,093 $3,831 $4,235 Operating expenses Operation and maintenance $1,398 $1,409 $1,467 $1,506 $1,527 $1,458 Depreciation and amortization $810 $788 $761 $790 $763 $707 Other operating expenses $491 $272 $318 $1,739 $338 $327 Total operating expenses $2,699 $2,469 $2,546 $4,035 $2,628 $2,492 Operating income $1,370 $1,619 $1,116 $58 $1,203 $1,743 Interest Expense $412 $405 $413 $406 $419 $379 Other income (expense) $175 $137 $122 $131 $211 $87 Income before income taxes $1,132 $1,351 $825 -$217 $995 $1,451 Provision for income taxes $340 $460 $209 -$127 $309 $457 Net income from continuing operations $793 $891 $616 -$90 $686 $994 Net income from discontinuing ops $100 $378 -$3 -$3 $6 $14 Other $3 $5 -$4 -$4 -$4 -$4 Net income $896 $1,274 $609 -$97 $688 $1,004 Net income available to common shareholders $896 $1,274 $609 -$97 $688 $1,004 Earnings per share Basic $1.27 $1.80 $0.86 -$0.14 $0.97 $1.42 Diluted $1.27 $1.80 $0.86 -$0.14 $0.97 $1.42 Weighted average shares outstanding Basic 707 707 707 706 706 706 Diluted 707 707 707 706 706 706 So you may notice that I have revenue to be about equal to what it was during the past quarter and that’s because I don’t believe the economy has excelled much during the past couple of quarters. The average analyst estimate for the quarter is $6.25 billion with a high of $6.8 billion. So I appear to be a bit optimistic for the quarter on revenue than the average but on a GAAP basis I’m predicting earnings to be $1.27 while the average estimate is $0.80 with a high of $0.98. I’m actually quite a bit higher than the rest of the pack because I’ve assumed best case scenarios for operating expenses as all their commodity prices have dropped significantly during the fourth quarter. We’ll have to wait and see what happens in a few days, but one thing is for sure, I’m not going to be buying any of the stock before the earnings report. However, I purchased a batch last week right before the ex-dividend date so I can increase my dividend a little. Duke is definitely a solid name to hold onto to during difficult times and the 4% dividend yield offers pretty good protection for when the stock price drops. Disclaimer: This article is in no way a recommendation to buy or sell any stock mentioned. This article is meant to serve as a journal for myself as to the rationale of why I bought/sold this stock when I look back on it in the future. These are only my personal opinions and you should do your own homework. Only you are responsible for what you trade and happy investing! Disclosure: The author is long DUK. (More…) The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article. Are you Bullish or Bearish on ? Bullish Bearish Neutral Results for ( ) Thanks for sharing your thoughts. Submit & View Results Skip to results » Share this article with a colleague Scalper1 News
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