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

... At Enron Energy Services (EES), ENE showed EBIT of $30 million vs a loss of
$18 million in 3Q'99 on revenues of $1.5 billion. EES reported new contracts of
$4.1 billion ... in line with estimates ....
* * *
... [The Blockbuster] deal represents a major move for EBS in its content services
business .... The speed of the rollout and move toward revenues and profits from
this deal suggest an acceleration of the valuations in our discounted cash flow
modeling....
... EES unit of ENE as on target for $16 billion of new contracts this year .... With
profit margins rising rapidly, EES is projected to be on target for $100 million in
2000 ebit and rapid growth in '01 and beyond.
269. On 10/19/00, CIBC issued a report on Enron. It rated Enron a "Buy," with a $95 price
target, and forecast 00, 01, and 02 EPS of $1.42, $1.65 and $1.95 for Enron. It also stated:
Enron delivered another strong quarter, posting strong year-over-year gains in
Wholesale Energy as well as Retail Energy Services (EES). Fully diluted EPS
(recurring) increased 26% to $0.34 ... ahead of our ... estimate .... We are
maintaining our BUY rating and 12-month target of $95 per share.
* * *
[EES] [r]eported IBIT of $30 million versus an $18 million loss a year ago on a
172% increase in revenues to $1.5 billion, up from $542 million a year ago. During
the quarter $4.1 billion of new contracts were recorded, including a $1 billion, 10year
agreement with Starwood Hotels and Resorts.
270. On 10/18/00, Lehman Brothers issued a report on Enron. It rated Enron a "Buy," with
a $90 price target, and forecast 00 and 01 EPS of $1.44 and $1.65 for Enron, as well as a 15% five-
year EPS growth rate:
Wholesale EBIT Jumps 66% ... Market Share Gains Evident In All Areas.
Retail Energy Services EBIT Increased Sequentially From 2Q By 25% .... Contracts
Signed Top $4 Billion, Up 64% From 1999.
Broadband Operations Continue To Hit Start Up Targets In Both Content Services
And Intermediation Markets.
... Enron Just Beginning To Harvest Crop From Seeds Sown On A Global Basis.
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