Duke Energy Q2 Profit Surges, Tops View; Lifts Full-year Outlook

(RTTNews) - Electric utility Duke Energy Corp. (DUK) Thursday reported a sharp increase in second-quarter profit, citing strong performance from all of its business units, particularly Regulated Utilities. Adjusted earnings topped analysts' expectations, while revenues came below view.

Looking forward, the company raised its adjusted earnings outlook for full year 2014.

"Our strong second quarter performance and continued focus on operational excellence leaves us well-positioned to meet our financial objectives in 2014 and beyond," said Lynn Good, president and CEO.

For the quarter, net income attributable to the company surged to $609 million or $0.86 per share from $339 million or $0.48 per share in the previous year. On an adjusted basis, earnings per share were $1.11, while the company posted $0.87 per share a year earlier.

On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $0.98 per share for the quarter. Analysts' estimates typically exclude special items.

Charlotte, North Carolina-based firm said its total operating revenues grew to $5.95 billion from $5.88 billion a year ago, but missed seven Wall Street analysts' consensus estimate of $6.12 billion.

The company experienced strong performance from all of its business units in the quarter, led by Regulated Utilities, which continued to benefit from favorable weather and a lower effective tax rate. In Regulated Utilities, operating revenues increased to $5.28 billion from $4.92 billion in the same period in 2013.

International Energy recognized a tax benefit resulting from reorganization of the company's operations in Chile.

Total operating expenses declined to $4.84 billion from $5.06 billion in the preceding year.

For full year 2014, the company now expects adjusted earnings to be in the range of $4.50 to $4.65 per share, up from the prior outlook of $4.45 to $4.60 per share. Analysts currently project annual earnings per share of $4.57 for the year.

On July 28, Duke Energy said it agreed to purchase certain generating assets from the North Carolina Eastern Municipal Power Agency or NCEMPA for $1.2 billion. NCEMPA consists of 32 cities and towns in eastern North Carolina.

DUK closed Wednesday's regular trading at $69.84 on the NYSE.