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

income, to about $400 million and about 26 percent increase in
earnings per share. And you're right, I mean, we reconfirmed our
earnings for 19 - or 2001 at $1.80, which is what the Street expects,
and 2.15 for next year. So it will be one more year of about 20
percent growth in earnings per share. And we've been doing that
for the last three or four years.
369. On 10/16/01, Lay appeared on CNBC, was interviewed and stated:
LAY: Well, first of all, we had a very strong third quarter. Our overall net
income was up about 35 percent, so just a little bit less than $400
million after tax. Our earnings per share were up about 26 percent.
Of course right on the Street's expectations.... Our retail business
showed a very strong quarter with income before interest and taxes up
about three and half fold. So we had a good strong quarter.... [W]e're
very pleased with it, particularly given the current economy.
* * *
Next year looks good. We did reconfirm in our earnings release
this morning that we expect to hit the fourth quarter numbers that
we have been projecting and $1.80 for this year and $2.15 next
year. So, again, about another 20 percent growth in earnings per
share for next year.
370. On 10/16/01, CitiGroup issued a report on Enron. The report continued to rate Enron
stock a "Buy" and to forecast 01 and 02 EPS of $1.80 and $2.15 for Enron while raising Enron's
long-term EPS growth rate to 23%. It also stated:
• Enron reported 3Q recurring operating EPS of $0.43 vs. $0.34, $0.01 above
our estimate.
• KEY DRIVER: Solid Americas Wholesale Service (Merchant Energy) IBIT
up 31%, in-line with volume growth of 35%.
• Recurring results exclude $2.2 billion in charges associated with several
under-performing non-Merchant businesses.
• Although the large size of these write-offs may initially be viewed negatively
by the market, we view them as clearing the balance sheet of underperforming
non-core assets which have been an overhang on the stock. View
write-offs positively in the long-run.
- 296 -