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

Enron announced an 18% increase in per share earnings to $0.40 per share, up from
$0.34 per share a year ago and above the $0.37 consensus. Net income increased
34% to $338 million.
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Enron Retail Services, a key company growth area, reported EBIT of $16 million on
a sharp increase in revenues to $642 million, up from $370 million a year ago. $3.7
billion of new contracts were recorded, ahead of our expectations of $3 billion.
231. On 4/13/00, Lehman Brothers issued a report on Enron. It rated Enron a "Buy" with
a $90 price target. It also forecast 00, 01 and 02 EPS of $1.41, $1.60 and $1.85 for Enron and a 15%
EPS growth rate and stated:
Enron reported ... earnings of $0.40 verus $0.34, handily beating consensus
expectations .... Broadband services broke even due to some dark fiber sales. More
importantly, key metrics were met or surpassed on both bandwidth intermediation
and content services.... Overall, it was a very strong quarter. The growth engine
hit on all cylinders.
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Results Validate Investment Thesis, Stock Remains Strong Buy
... [O]perations are hitting on all cylinders.
232. On 4/14/00, Deutsche Bank issued reports on Enron. The reports rated Enron a
"Buy," raised its price target to $96 and increased Enron's forecasted 00 and 01 EPS to $1.37 and
$1.60 and its three-year EPS growth rate to 16% for Enron. The reports also stated:
• Management reviewed the strong Q1 operating EPS of $0.40/share that
produced a 17.7% increase over 1Q99 EPS of $0.34/share.
• [S]trong Q1 earnings results and substantial business development in the
wholesale, retail, and broadband segments bode well for continued earnings
growth.
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Yesterday afternoon, Enron management held its traditional Q1 meeting in New
York. Jeff Skilling presented another impressive picture of Enron's growth
prospects in domestic energy markets, international ... markets, and the developing
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