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

• Overall, Enron's businesses had been performing well. Enron was well positioned
for significant continued growth.
158. On 7/13/99, CS First Boston issued a report on Enron, rating Enron a "Buy" and
forecasting 00 EPS of $1.35 and a 15% five-year EPS growth rate for Enron. It also stated:
ENRON – EARNINGS GROWTH CONTINUES
2Q EPS of $[0.27] exceeds our EPS estimate of $[0.25] ....
Wholesale energy marketing remains strong .... We expect continued operating
profit growth in the upper end of the 15-20% range.
Retail energy marketing is on pace for a profitable fourth quarter ... as Enron
continues to sign ... outsourcing contracts.
* * *
There exists substantial upside to our EPS estimates in the out-years (2001 and
beyond).
159. On 7/13/99, Deutsche Bank issued a report on Enron, rating Enron a "Buy,"
forecasting 00 EPS of $1.375 and a 17% three-year EPS growth rate for Enron. It also stated:
• Enron reported operating EPS of $[0.27] ....
* * *
• Enron's 2Q results beat our ... expectations ....
• Impressive gains in the wholesale energy segment and reduced losses in the
retail energy segment offset reduced earnings in the transportation and
distribution and E&P segments.
* * *
• As a result of strong 2Q results, we are ... maintaining our BUY
recommendation.
* * *
... We remain impressed with Enron's continued ability to produce strong earnings
growth in its core wholesale energy businesses. We fully anticipate that the
company will be capable of producing EPS growth in excess of 15% ....
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