Compared with the second quarter last year, operating revenue increased $330 million, or 6.2%, to $5.65 billion. Mild weather dampened demand for both the merchant and regulated-electric businesses. Net income fell $123 million, or 28.5%, to $309 million. Income results were especially disappointing because the company's debt reduction efforts reduced interest expense by $39 million.
The news wasn't a lot better at Cinergy
Duke's stock has been anything but a wilting violet, up 36.8% over the past 52 weeks. That handily beats the 13% gain by the Standard & Poor's 500 but doesn't match the 57.1% gain from Constellation Energy
The potential for Duke is clear when you look at its profit margins. Class act -- and fellow Motley Fool Income Investor recommendation -- Southern Company
Unfortunately, analysts do not see the company growing earnings more than 5% annually for the next five years. A 3.7% dividend will help inflate total returns, but that 5% growth rate leaves a lot to be desired -- as did the less-than-princely quarterly results for Duke and Cinergy.
Constellation Energy is another Income Investor pick. Are you looking for great companies with outstanding dividends that offer both long-term capital gains and dividend growth? Try a free trial to theIncome Investor newsletter.Click herefor more details.