Enron Corp. - University of California | Office of The President

... Management has also effectively utilized off-balance sheet, non-recourse
financings to fund its expansion efforts while maintaining an appropriate capital
structure.
143. On 4/7/99, Lehman Brothers issued a report on Enron, rating Enron a "Buy,"
forecasting 00 EPS of $1.30 for Enron and stating:
Pullback In Stock Creates Buying Opportunity
Enron has pulled back roughly 12% ... we conclude that the pullback is an
opportune time to buy the stock.
* * *
As investors continue to see rapid growth in wholesale earnings, increased
globalization of commercial products and services and we get confirmation of the
crossover to profits at EES we expect multiple expansion.
144. On 4/13/99, Enron reported better-than-expected 1stQ 99 results:
Enron Corp. announced ... 99 first quarter net income increased 18 percent
to $253 million compared to $214 million in the first quarter of 98. Enron also
reported earnings per ... share of $0.34 ... compared to $0.325 ....
* * *
"Our first quarter results reflect the continued strength of our worldwide
energy businesses. Each region of our wholesale business continued to grow
during the quarter in terms of ... profitability.... Enron Energy Services added $1.7
billion of retail contracts, including several large, multi-location energy
outsourcing agreements," said Kenneth L. Lay, Enron chairman and chief
executive officer. "We expect 1999 to be another excellent year at Enron for both
earnings growth and return to our shareholders."
145. On 4/13/99, Enron held a conference call for analysts and investors to discuss Enron's
business. During the call, Lay, Skilling, Koenig and Causey stated:
• Enron was very pleased with its 1stQ results reflecting the continued strength of
our worldwide energy operations which Enron expected to continue through 99.
Enron had a very good quarter across the Company.
• All four of Enron's main businesses experienced significant growth and were all
significantly profitable. Commodity sales and services put in a stunning
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