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

segment grew to $627 million during the quarter from $378 million in 3Q99,
a 66% increase.
* * *
• Enron Energy Services continues to capitalize on the energy-outsourcing
trend. During the quarter, EBIT from the segment totaled $30 million
compared to a loss of $18 million in 3Q99. We believe ENE is on track to
achieve its $16 billion contract value target and will likely hit a new plateau
of growth by the end of this year.
* * *
• ... ENE has begun to roll out its entertainment-on-demand product with
Blockbuster Inc. which will provide movies .... The company has already
implemented it in certain areas of four U.S. markets, which is expects to
complete by year-end FY00. ENE expects to roll this business out in more
U.S. cities and into Europe by the beginning of FY01.
266. On 10/17/00, Merrill Lynch issued a report on Enron. It rated Enron a "Buy," with
a $107 price target, and forecast 00 and 01 EPS of $1.41 and $1.61, and an 18% five-year EPS
growth rate for Enron. It also stated:
• We are reiterating our Buy/Buy opinions on Enron based on our $107 price
objective.
* * *
• ... ENE's high-growth Wholesale (WEOS) unit continues to outperform,
posting staggering growth in earnings up 66% ....
• Energy retail is also kicking into high gear, with earnings showing a
positive $48 million swing and revenues tripling to $1.5 billion. Clearly, EES's
primarily fixed-cost platform is in place, and margin from new contracts signed
should fall quickly to the bottom line.
• ENE posted 3Q'00 EPS of $0.34 versus $0.27 last year – up 26% and above
$0.32 consensus ....
267. On 10/18/00, CitiGroup issued a report on Enron. It rated Enron a "Buy," with a $100
price target, and forecast 00 and 01 EPS of $1.43 and $1.70 and a 20% long-term EPS growth rate
for Enron. It also stated:
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