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

180. On 10/12/99, CS First Boston issued a report on Enron. It rated Enron a "Buy" and
forecast 00 EPS of $1.33 and a 15% five-year EPS growth rate for Enron. It also stated:
Enron reported 3Q EPS from continuing operations of $0.27 versus $0.24 a year ago.
The quarter was lead by strong growth in Wholesale Energy Marketing, up 36% to
$378 million versus $277 million in the year ago period....
Retail energy marketing demonstrated further improvement, and we continue to
expect a profitable ... fourth quarter, as Enron continues to sign total outsourcing
contracts.
181. On 10/12/99, Merrill Lynch issued a report on Enron. It rated Enron a "Long Term
Buy" and forecast 00 EPS of $1.37 and an 18% five-year EPS growth rate for Enron. It also stated:
We continue to recommend that investors ... Buy for the long-term as ENE
continues to demonstrate its dexterity in delivering solid earnings growth even in
challenging energy markets.
* * *
Importantly, the retail segment continues to show improvement as ... the
backlog of total energy expenditures (TEEs) has grown to $2.5 billion from $850 mm
last year at this time.
182. On 10/12/99, Bank America issued a report on Enron. It rated Enron a "Buy,"
forecast 00 EPS of $1.38 and a 15% secular EPS growth rate for Enron. It also stated:
ENE reported solid 3Q99 EPS results of $0.27 ... compares to our estimate of $0.26.
Greater year over year earnings were primarily a result of continued strong
performance from its wholesale businesses as well as better than expected results
from its retail energy services operations .... We are maintaining our Buy rating ....
More significantly, 3Q99 results demonstrate that ENE has positioned itself in the
sweet spot of the evolving energy and communications businesses both domestically
and internationally.... The company's retail energy services segment is
outperforming our expectations and holds the potential to be a major business in
the next year.
* * *
Retail Energy Services produced the best quarterly results since the inception
of the business .... During the quarter, Enron Energy Services entered into contracts
representing $2.5 billion of future customers expenditures for energy services, or
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