Dynegy Earnings: Loss Narrows, Stock Surges Up

Dynegy Inc.’s (NYSE:DYN) first quarter loss narrowed, beating estimates. Dynegy is a holding company conducts substantially all of its business operations through its subsidiaries. Its business is the production and sale of electric energy, capacity, and ancillary services.

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Dynegy Earnings Cheat Sheet for the First Quarter

Results: Loss narrowed to $58 million (loss of 47 cents per diluted share) from $77 million (loss of 64 cents per share) in the same quarter a year earlier.

Revenue: Fell 65% to $177 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dynegy Inc. beat the mean analyst estimate of a loss of 51 cents per share. It fell short of the average revenue estimate of $323.6 million.

Quoting Management: “Our operating performance for the first quarter 2012 achieved significantly higher capacity factors in a particularly difficult commodity environment along with weaker demand resulting from unusually warm winter weather,” said Robert C. Flexon, Dynegy President and Chief Executive Officer.

Key Stats:

After two quarters of falling short, the company beat estimates last quarter. In the fourth quarter of the last fiscal year, it missed the mark by $1.79, and in the third quarter of the last fiscal year, it came in under estimates by 2 cents.

Revenue has fallen for the last three quarters in a row. In the fourth quarter of the last fiscal year, revenue declined 47.2% to $238 million while the figure fell 33.4% in the third quarter of the last fiscal year from the year earlier.

Looking Forward: Analysts seem more positive about the company’s results for the next quarter than sixty days ago. The average estimate for the second quarter has moved from a loss of 63 cents a share to a loss of 21 cents over the last sixty days. The average estimate for the fiscal year is currently a loss of $2 per share, down from a loss of $1.35 sixty days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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