- Duke Energy 's (DUK -1.4%) plans to sell $2B of stock this year, in part to make up for the financial impact of recent tax reforms on its cash flow as it passes savings from the lower tax rates to customers, sent shares lower today by as much as 2.5% before recouping some of the losses.
- DUK’s equity sale would be as much as $1.65B more than the company was contemplating before the corporate rate cuts, CFO Steve Young tells Bloomberg.
- “Because Duke Energy is not a significant cash taxpayer, any reduction to customer rates will place downward pressure on our consolidated cash flows,” Young says.
- The new issuance and the weak guidance - DUK forecasts 2018 adjusted EPS of $4.55-$4.85, below its plans to grow earnings by 4%-6% annually through 2022 - also are causing investors to lower their expectations for 2018, says Guggenheim Securities analyst Shahriar Pourreza, although the company expects to resume its planned earnings growth next year.
- Now read: Duke Energy Corporation 2017 Q4 - Results - Earnings Call Slides
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