UPDATE 2-Entergy sees Q2 profit below Street, cuts '09 view

lunes 20 de julio de 2009 18:10 CEST
 

* Sees Q2 operational EPS about $1.22 * Cuts FY operational EPS view range by 50 cents * Shares down as much as 2 pct (Recasts; adds details, analyst comments, updates share movement)

BANGALORE, July 20 (Reuters) - Entergy Corp (ETR.N: Cotización) forecast second-quarter operational profit below analysts' expectations, hurt mainly by additional outages at its nuclear unit.

Planned refueling outage totaled 78 days in the second quarter, compared with 19 refueling outage days a year ago at Entergy Nuclear, the company said.

"This is a tough way to start second-quarter earnings for the power stocks, which we already thought were going to be rocky due to weak demand and lower power prices," Credit Suisse analyst Dan Eggers said.

The energy company also lowered its full-year profit outlook, citing declining power prices and additional charges related to nuclear decommissioning trust funds.

Decommissioning funds are required by the U.S. Nuclear Regulatory Commission to cover the anticipated costs of taking plants out of service and eventually razing them.

Credit Suisse's Eggers reduced his 2009 earnings view on the company by 29 cents to $6.42 a share, saying the cut took into account the expected second-quarter results, but left his outlook for the second-half of the year unchanged.

"The only source of comfort is that some of Entergy's problems -- decommissioning trust and nuclear outages -- are issues unique to its second quarter," he said.

Though the analyst expects some pressure on the company's stock following the outlook cut, he said the value proposition in its shares did not solely hinge on 2009 earnings.   Continuación...