Duke Saw Slowdown but Kept Mum, Critic Claims

In October of 2001, as Enron prepared to shock Wall Street with a huge earnings shortfall, rival Duke (DUK Quote) was pondering a big surprise of its own.

The North Carolina energy giant was set to report third-quarter earnings that would topple expectations. The numbers looked particularly strong in energy trading, a business pioneered by Enron and one that Wall Street continued to embrace as especially lucrative and rewarding.

Duke's "problem," if you will, was that third-quarter earnings were so high -- and beating the Street, by more than a penny or two, promised only limited rewards. Nevertheless, Duke went on to report ongoing quarterly profits of $1.02 that beat consensus estimates by 26 cents and set a company record that remains intact today. ...