Scalper1 News
Summary Duke Energy has had an incredible year so far. The company has shown tremendous growth over the course of the year 2014. Net income for Duke Energy during the third quarter of 2014 amounted to $1.27 billion, up by 27% compared to $1 billion in the third quarter of 2013. International Energy and Commercial Power divisions are expected to contribute more toward Duke Energy’s growth, owing to global and domestic expansion and investments into several high-end power projects. Duke has investments of up to $2 billion lined up over the next 7 years which include a major natural gas pipeline in North Carolina. The current period of sliding share prices will represent an ideal entry point for potential investors since Duke Energy has set solid growth prospects in place. Duke Energy (NYSE: DUK ) has had an incredible year so far. The company has shown tremendous growth over the course of the year 2014 with revenues as well as earnings rising. The company has also managed to outperform analysts’ consensus estimates consistently in the quarters so far. The company benefited significantly from the energy boom in the US economy. As the US economy continues to grow, demand for energy has surged incredibly by the industrial sector in particular. Investors have remained confident in Duke’s ability to generate growth. The energy company’s share prices clearly indicate the positive investor sentiment generated by Duke during the year 2014. The prices have been rising consistently over the course of the year, extending the course of their upward climb to almost 5 years. The last 5 years have been highly rewarding for Duke as the energy sector has gained considerable momentum during this time period as well. Share prices for the company have grown from $68 in January 2014 to a five-year high level of $86.83 in December . The company’s shares are currently trading near the $84 mark. Overview of Duke’s Last Reported Financial Performance Duke Energy last reported its earnings back in November. The energy company reported its financial results for the third quarter of fiscal year 2014. During the quarter, the company generated revenues of $6.4 billion, up by a slight margin of 3% as compared to $6.2 billion in the year ago quarter. Operating income for Duke during the quarter amounted to $1.62 billion, down slightly from $1.66 billion in the same quarter of the previous year. Operating incomes fell on account of higher selling costs as well as higher depreciation charges. Net income for Duke Energy during the third quarter of 2014 amounted to $1.27 billion, up by an incredible 27% as compared to $1 billion in the third quarter of 2013. Earnings per share for Duke during the quarter thus amounted to $1.27. It is important to note that Duke Energy continued its strong dividend payout tradition during the quarter and rewarded investors with a dividend of $0.80 per share. Dividends rose from $0.78 per share in the year ago quarter. Future Outlook for Duke Energy Duke Energy has been able to generate tremendous growth during the year owing to a positive market for energy companies. With the growing US economy, energy companies have been facing high demand, and they have been facilitated in meeting that demand as a result of booming crude oil and coal output globally as well as domestically. The company’s Regulated Utilities division has been the principal driver behind its growth and has accounted for more than half of the company’s revenues over the years. However, going forward, the company’s International Energy and Commercial Power divisions are expected to contribute more toward Duke Energy’s growth, owing to global and domestic expansion and investments into several high-end power projects. With demand growth in the US expected to slow down in the coming years, Duke Energy, through its International Energy segment, can generate growth by focusing on its overseas operations. Latin America in particular is expected to show considerable demand growth for electricity over the coming years. Electricity demand in Brazil is expected to grow almost 5% as the manufacturing sector of the country expands. Duke can also look towards the European market for further global expansion. Duke also plans to take advantage of the latest trends in electricity generation with wind and solar power projects in the pipeline that stand to generate 500 MW of electricity. Moreover, Duke has investments of up to $2 billion lined up over the next 7 years which include a major natural gas pipeline in North Carolina. The company’s share prices are currently following a declining trend, but that was because investors had sold shares as prices reached the five year high level. However, with revenues as well as earnings expected to rise in the coming years as the company generates positive returns from its power projects, share prices have a definite upside. Earnings are expected to grow 5% on average over the next 5 years. Conclusion Duke Energy has generated incredible growth over the course of the last 5 years, owing to a favorable US market and enhanced operational efficiency. The company is looking towards overseas operations in order to compensate for slowing demand growth in the US economy. Duke has effectively modified its portfolio in order to account for the latest trends in the energy sector with wind and solar power projects lined up for the future as well. The company also remains committed towards further enhancing operational efficiency and cutting down costs to further fuel earnings growth. The current period of sliding share prices will represent an ideal entry point for potential investors. Investors will gain significantly owing to the solid growth prospects that Duke has to offer. Now that you’ve read this, are you Bullish or Bearish on ? Bullish Bearish Sentiment on ( ) Thanks for sharing your thoughts. Why are you ? Submit & View Results Skip to results » Share this article with a colleague Scalper1 News
Scalper1 News