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.
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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